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BUSINESS 




Computers & 
Technology 



snEsi^^isjioisxaeEsa 



Alameda 

Newspaper I 

Group I 

SectionCJ 

Sunday 
Octobers, 1996 








Byte by byte, 
a San 
Francisco 
group is 
attempting 
to archive 
the ever- 
changing 

and 

expanding 

Internet 



hoping to create a 



archive Web pages 
that are no longer in 
UM, such as the Phil 
Ortmm for President 
home page at right, 
for future reference 
by students and 




"We're creating a backup of the Net, 

a library of everybody's notes, 

a big repository to help people ask 

questions of what has gone on." 

- Brewster Kahie 



SAW FRANCISCO 

Portions of the Internet are 
disappearing before our 
very eyes. 
As qulcl<iy as Informa- 
tion Is added, pieces are 
eliminated World Wide Web pages 
and newsgroups appear, then a{| 
modified or deleted altogether. 

Enter Brewster Kahle. a wide-eyed 
entrepreneur from tlie Massachusetts 
Institute of Technology with an ambi- 
tious goal: to archive the entirety of 
the Internet. He Is Intent on capturing 
the Inlernefs early days — and many 
days thereafter — for posterity And 
eventually for profit 

Kahle imagines the database, 
which ultimately could dwarf the Li- 
brary of Congress, will be of use to 
students, scholars, historians — and 
for ends he readily admits he hasn't 
quite figured out The only thing he Is 
certain of Is that an essenUal piece of 
digital history is slipping away. 

"When something On the Net dis- 
appears. It's gone. When a first- 






generation Web page Is gone. It's 
gone Gone. gone. gone. " Kahle said. 
We re creating a backup of the Net. a 
library of everbody's notes, a big re- 
pository to help people ask questions 
of what has gone on." 

The Internet Archive may eventu- 
ally hold as much data as the Library 
of Congress, but It certainly won't 
take up as much space, por the time 
being, the data will not even fUl a coat 
room In the two-story white Victorian 
In San Francisco's Presidio that the 
Internet Archives calls home. 



tapes no larger than video cassettes. 
One tape holds between 35 and 70 gl- 
glbvtes ol UiformaUon. 700 times 
more than a standard Zip drive used 
to back up the hard drive of a per- 
sonal computer A waist high. 3-foQl • 
wide "tape robot" holds 50 tapes that ; 
can record roughly two terabytes of , ■ 
Information, one-tenth the text 
volume of the Library of Congress. 

Space concerns are far from [ 

Kahle's biggest challenge, however. ; 
The major hurdles — very basic ones , 
that the Internet Archives has yet to 
overcome — are how exacUy to collect 
the data, and how to store It in such a 
way thai It Is readily accessible. 

They must also determine how 
often they will have to comb the In- 
ternet. A 1992 University of Colorado 
study found that the average Web 
page changes every 44 days. Prelimi- 
nary research by the Internet 



Please see I 



.04 



History: Group compiling record of Internet's early years 



Continued from D 1 



Archive showrd (ha( wllhin a inoiilh. 
one fourth o( the Ima^rs on the hi- 
teriiet chan^d. 

"It's like calling all your friends, 
asking what books lliey have, lior- 
rowing them, copying Ihem and (lien 
giving (hem bark." said Z Smith, dl- 
rector of engineering for llic Archive, 
describing the breadth of Ihe task 

Then the challenge Is (o work this 
so 'that everyone can get what thoy 
want, when they want It," Smilli 
aJUcd "Can you Imagine what you 
h«V( lo do when a million people all 
wan\ access to a dead file?" 

"jkahle Intends the archive lo Include 
fMjjt-, public Internet protocols: the 
wftV Gopher, FTP and Netnews He 
OgStts (hey presenUy account for 10 
terabytes of data 

For DOW. Kahle Is relying on dona- 
tions of data to lay Ihe foundation for 
hl# -e-Uionth-old endeavor For In- 
stance, the search engine Open Text 
has (^ijtrlbuled Its own snapshots of 
the Web from July and August of 1996. 



Ihe archive has riTclvcd CUKOMs 
thai contain llsenci poslliigs Ironi 
1992 and pan of 199:) and Ihcrc are 
plans to gel similar posllngs from 19H0 
lo 1990 Kahle Is working wllh Ihe San 
Diego Sui)ercoinpnlor Center lo record 
seven terabytes of historical data Ironi 
the File Transler Protocol 

The Web Is the faslcsl growing piece 
and one Ihal the Inlernel Archives In- 
(ends lo capture on lis own. II Is devel- 
oping a crawler, much like those used 
by search engines such as Alia VIsla. lo 
comb Ihe Web and delect and record 
changes lo pages. 

One practical use for Ihe archive Is 
already under way Kahle Is working 
with the Smilhsonlans National Mu- 
seum of American History to preserve 
Web pages relating lo the 1996 presi- 
dential election The pages already on 
display Include some thai have been 
deleted from Ihe Web, such as Ihe Iowa 
Caucus home page, 

Harry Rulienslcin, a specialist In po 
llUcal history al Ihe National Museum 
of American History, said ihe archive Is 
signincani because It will capture the 



liilaiK y (il Ihe Web Hi- i .lulloncd, how 
ever, ihal II could turn oul the Web 
docs not live up lo expectations as Ihe 
Inlernel medium of Ihe future, 

"Ms sorl of a gamble," Rubensleln 
said. "Ms a great project and I ni glad 
somebody Is doing II. Bui how II all 
lurns oul we woni know for another 
decade ■ 

Given their own histories. Kahle and 
engineer Smith may be up lo Ihe chal- 
lenge and entrepreneurial uncertainty 
Kahle was Ihe creator of WAIS. or Wide 
Area Information Servers, one ol Ihe 
breakthrough search engines ol Ihe In- 
ternet WAIS Is used lo search large da- 
tabases and was widelv used before Ihe 
adveni of Ihe World Wide Web. 

America Online paid S15 million In 
cash lor WAIS last year, a chunk ol 
which went lo Kahle He has Invested 
S400.000 of his earnings In Ihe In- 
lernel Archive, and thus far Is the or- 
ganl^atlons sole source of financial 
support. 

Smith came from Xerox Palo Alto 
Research Center, where he was an en- 



gineer fhere. he hel|M-d develop the 
llrsi desktop fax/scanner/copler from 
discarded parts. 

Joining Kahle In founding Inlernel 
Archive Is Bruce Gllllal. Ihe former 
business manager from WAIS Gllllal 
was credited with helping turn Kahle s 
Ideas Into tangible, prolllable concepts 

Smith and Kahle have a history to- 
gether as well The were colleagues In 
the early 1980s al MIT They met as 
fellow members of the staff of Link, a 
sludenl newspaper beni on undoing 
Ihe Reagan-era military Industrial com- 
plex and finding more productive uses 
lor Ihe technology 

Smith said the 35 year-old Kahle 
seeks lo be wacky and to have fun at 
all times "When one sees Brewsler. 
one Is reminded Ihal human evolution 
Is the process of making childhood last 
longer and longer." Smilh said 

One IndlcaUon of Kahle s style Is his 
taste In ofllces Thinking Machines, a 
multimillion-dollar supercomputer 
business he helped found after gradu 
allng from MIT. was housed In a Vlclo- 
rlan house. So was WAIS In Menio 



Park, and Inlernel Archives la Ihe Pre- 
sidio 

"II sets a lone Uial we re a family." 
said Kahle. 

lllllmalely. Kahle ex()ecls Inlernel 
Archive lo turn a profll. and polenllally 
a big one lleres how He thinks 
people may pay for access lo records, 
and he also llilnks corporations will 
pay for technology Ihal helps Uiem 
create Iheir own backup systems of 
(heir dala. 

For Ihe lime being, he's happy (o ( 
creale a history of Ihe early Internet be- ' 
fore II disappears So what does he 
think Ihe historians will find when they 
examine these ephemeral pages? 

"This period ol the Web Is encom- 
passing peoples dreams of a new tech- 
nology." he said "We see Ideas of a 
better life, (houglils like, my book will 
finally gel published on Ihe Nel or 1 
may finally gel enough allenllon lo gel 

Then II will move Into a mature 
phase and find Us niche, he added. 
Bul by then this will be Ihe early 
Web and we don 1 want lo lose 11 " 



Digitized by tlie Internet Arciiive 
in 2013 



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http://www.slate.com/Conccpiy96-07- 1 5/Concept.a.s 



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The Art of Losing 

Why forgetting everything that 
ever appeared on the Web 
wouldn't be a disaster. 



BY DAVID BERREBY 

(J.323 words; posted Monday, July 15; to be 

composted Tuesday, July 23) 

No writer has captured the strangeness and 
melancholy of life on the Internet better 
than Jorge Luis Borges. In stories written 
decades before the Net was conceivable, he 
wrote of a book that contained all possible 
outcomes of any action ("The Garden of 
Forking Paths"), a library that contains all 
possible books ("The Library at Babel"), a 
man who cannot forget a single thing he's 
ever seen or heard ("Funes the 
Memorious"), a map so accurate that it 
completely covers the kingdom it describes 
("Of Exactitude in Science"), and a country 
where there is no plagiarism, because all 
books are considered the work of a single 
author, who is everyone ("Tlon, Uqbar, 
Orbis Tertius"). In all these works, along 
with the philosophical ingenuity and wit is 
an almost suffocating sense of being 
trapped under glass in an intellectual 
hothouse with no way out into the sun. 
Funes dies at 19, seemingly as old as a 
pyramid. The librarians of Babel have their 
ranks thinned by illness and suicide. 



of5 



mn/Qf, M-m PV1 



Slate 



http://www.slutc.com/ConccpL/96-07- 1 5/Concept 




ranks thinned by illness and suicide. 

Brewster Kahle has been reading Borges of late, 
which is appropriate, because last March, Kahle 
started a project that could, if taken to its logical 
extreme, maJce the world a more Borgesian place. 
Kahle heads a nonprofit organization called the 
Internet Archive. Its mission: to preserve every last 
bit ever posted on the World Wide Web, in Internet 
newsgroups, or made available through gophers. "A 
copy of every bit will be maintained by a charitable 
trust, fimded to a level that assures that the bits will 
never die," he says. "Which means that every 10 
years or so we'll have to translate it all into a new 
format, to preserve it in accessible form." Doing so, 
he says, is surprisingly practical and cheap. The 
entire Internet, all its text and video and audio, 
takes up from one to 10 terabytes of code. (A 
terabyte is a million megabytes, which would fit on 
2,000 500 MB hard drives.) That means even the 
biggest estimates on the size of the Net make it 
equivalent to 10 large Blockbuster franchises. 



If someone doesn't preserve the Internet, Kahle 
says, it will be lost to posterity forever: "There 
needs to be an accumulation for future historians." 
Right now he's working with the Smithsonian on a 
project to preserve election-related Web pages, so 
that they can take their rightful place among the 
memorabilia of the 1996 race in the museum's 
exhibit this winter. 



The thought of capturing all this useful information 
for future scholars is appealing, at least at first 
glance. The ancient Romans didn't care what kind 
of graffiti people scratched into the walls of the 
red-light district, but those scratchings ("Sabinus 
was here with Primagenia") are now part of the 
scholarly Corpus Inscriptionum Latinarum. But 
with Borges in mind, I can't really wish Kahle good 
luck and baud speed. 






c|2(g http://www.slale.com/Conccpl/96-07- 1 5/Concept. 

My problem is not with posterity, which is 
welcome to as many teen-agers' Web sites as it 
wants ("I now have a band!!! They are really 
good and I am very happy!" is what I read on one 
just the other day). The problem is that an Internet 
archive will be available not just to our distant 
descendants but to us, and if we're not careful, we'll 
use it. Think about it: The most embarrassing 
e-mail you ever wrote, available to anyone curious 
enough to go looking. You want to write a song full 
of ingenious rhymes for "orange"? A click can tell 
you it's been done 1 1 times already. Your boss 
wants to know if you called the client exactly at 10 
last Tuesday. Prefer not to remember? Too bad, it 
can be checked. 

Personally, all this stuff would drive me crazy. "Me 
too," replies Nathan Myhrvold, a Microsoft 
executive who lately has been championing the idea 
of an archive. "But I suspect we're going to have to 
get used to it-the trend is all but inevitable." "It 
scares me too," says Kahle. "One of the nice things 
about humans is that we die. We don't have our 
grandparents hanging around over oiir shoulders. 
Every so often you go through and bum the 
libraries, just to rid yourself of the past so you can 
go forward." Many a physicist, chemist, and 
biologist over the past three centuries has wished 
that Aristotle's precious works on science had been 
preserved a little less well, because whatever 
Aristotle got wrong about planets and plants, 
motions and animals had to be cleared away by 
U-emendous and sometimes dangerous effort. Undue 
reverence of Aristotle ruined Galileo's career and 
nearly cost him his life. In China, imperial officials 
were trained to pass rigorous exams in the 
Confucian classics; as a consequence, they looked 
down on trade, practical work, and foreigners. The 
outcome was not good. 



It wasn't just that Aristotle or Confucius were out 
of date at this point or that. The sheer volume of 
work preserved in Hbraries made people hold 
what the 17th-century English poet and botanist 
Abraham Cowley called the "pernicious opinion" 
that "all things to be searched in nature had already 
been found and discovered by the ancients." (His 
contemporary Henry Power wrote: "Me-thinks I see 
how all the old rubbish must be thrown away." ) 

The ill-effects of perfect records are already upon 
us. Take the Brady Bunch movies. Audio and video 
archives make all the bad songs and TV shows and 
outfits of the last three decades available, and so 
pop culture in the '90s is an uneasy mix of ironic 
quotation and frank nostalgia for stuff whose only 
merit is, hey, I watched that show when I was a kid. 
Teen-agers dressed like hippies from a time before 
they were bom can sit before a TV whose ads and 
programs are full of references to old TV shows, 
and see a clip about the making of a movie version 
of The Flintstones (itself a lousy copy of The 
Honeymooners). 

If culture seems too remote a thing to worry about, 
consider the prospect in personal terms. I was once 
in a relationship in which two or even three e-mails 
a day weren't out of the ordinary. It was the 
best-documented liaison I was ever in, and the 
fights in it were the worst I've ever experienced. 
This is Jiot a coincidence. With all that 
documentation establishing who'd done and said 
what, we had no freedom to reinvent the past 
according to the emotions of the present. We had no 
wiggle room. Exhausted, we broke up. 



4 of 5 



7/28/96 12:02 PV 




You might reply that much of human endeavor 
throughout history has been the struggle to 
preserve the past from the all-destroying fire of 
time. But what makes a vibrant culture or inner life 
possible is the fact that neither the past nor the fire 
ever completely triumphs. As Tom Stoppard puts it 
in Arcadia, a play that meditates beautifully on the 
counterpoint of saving and losing, "It's wanting to 
know that makes us matter. If the answers are in the 
back of the book I can wait, but what a drag." 
Another character, a chaos theorist, chimes in: "It's 
the best possible time to be alive, when almost 
everything you thought you knew is wrong." 

"I think that we will learn ways to forget 
information, even if it's in digitally accessible 
form," says Kahle, reassuringly. "When we went 
from an oral culture to writing, people complained 
that people wouldn't remember as well and wouldn't 
speak as well, because they'd have writing as a 
crutch. And then when printing superseded writing, 
people worried about being inundated with trash. 
We're in the middle of one of these transitions." 



Sensible enough. And in that coming debate, I 
know where I stand: In the party of forgetfulness. I 
don't want to live in a museum. As we're 
encouraged to exult over the vast new volumes of 
information that are becoming easier and easier to 
capture, remember that the art of losing is also 
important to master. 

■ Links 

pjT Reflect on Borges' visions of a fully archived 
world at The Garden of Forking Paths , a site 
devoted to the writer. Or learn more about Kahle's 
potentially Borgesian project at the Internet 
Archive. (If the project succeeds, every teen-ager's 
Web site will be available for all eternity. Reflect 
on that at " NeWen Home Page .") 

David Berreby writes about science and culture for 
the New York Times Magazine, Lingua Franca, the 
Sciences, and the New Republic. 

Illustration by Horacio Cardo 
Previous High Concept columns 



© 1996 Microsoft and/or its suppliers. All rights reserved. 



5 of 5 



7/28/96 12:02 PM 



rTT^nrR2.V 1996 



©bctoosljiniiUmpost 



BUSINESS 



In California, Creating a Weh of the Past 



Scientist-Entrepreneur 
Is Trying to Record 
Internet's Evolution 

By Rnjiv Chandrasekaran 



S \N FRANCISCO — Brewster 
Kahle ihinJvs the bitemet is histor,'. 

Three months npo. the J5-vear- 
oKl comp'jter scientist and miUion- 
aire entrepreneur embarked on an 
.imbitjous project to record what's 
happerung in cyberspace before the 
elecuonic record is lost. He hired a 
few assistants, bought a bunch of 
massive data-collection devices and 
programmed several computers to 
aurf — and save — everything they 
could Qnd on the global computer 
network. 

By the end of the year Kahle 
hopes to have an unprecedented per- 
manent record of all publicly accessi- 
ble data on the fast-growing, ever- 
changing Internet, whether it's 
neighborhood home pages on the 
trraphically oriented World Wide 
Web or foreign-language "news- 
j-roup" postings about Aincan cul- 
ture. His giganuc archive, industry 




"There 's a real 
value in our 
early Internet 
history. ...We 
need to preserve 
our digital 



heritage. " 



experts said, could be a treasure 
trove to scholars and analysts. 

"There's a real value m our early 
Internet history, which is beuig creat- 
ed now," said KahJe, whose endeavor 
is called the internet Archives. "No- 
body has taken this idea very senous- 
ly until now, but we need to preserve 
our digital heritage." 

Located in a histonc Spanish-style 
building overlooking the Golden Gate 
Bndge in this city's recently decom- 
missioned Presidio Army base, the ar- 



»» tTtVt C«TVLO f 0« tX < 



chrve looks more like a gntty start-up 
software company than a repository 
of the world's digital history. 

High-speed computers and robot- 
dnven tape dnves that each can hold 
2 terabytes, which translates into 2 
million megabytes of data, sit on mis- 
matched office furniture. 

So far the archive has collected al- 
most half a terabyte — half a trillion 
characters — of data. Kahle estimates 
the entire Internet contains from 2 
terabytes to 10 terabytes. A typical 



— Brewster Kalik 



public library with 300.000 books, bv 
comparison, has about 3 terabytes oi 
data. 

Belying the perception of the Inter- 
net as a linutless cistern of informa- 
tion. Kahle and others said that reams 
of data on the network are changed or 
deleted every day, often to make 
room for new matenal. Most news- 
group postings, for example, vanish 
after about a week. On the Web, site;, 
appear and disappear with the speed 
See INTERNET. B14,CoL I 



A Year in the Life of the Internet 



INTERNET, From HI 



vl fashion trends. Some Web pages 
are revised every few months to add 
ever-fancier graphics, sounds and vid- 
eo clips, with littJe record kept of the 
previous, more primitive incarna- 
tions. 

A University of Colorado study 
published in 1992, when content on 
the Internet was far less dynamic, 
found that the average life of a docu- 
- ment on the network was only 44 
days. "Today those lifetimes are un- 
doubtedly getting smaJler and small- 
er." said the study's author, Michael 
F. Schwartz, an associate professor of 
computer science at the uiuversity. 

While Kahle acknowledges that he 
won't be able to keep up with every 
change, he hopes to establish a snap- 
shot of what the Internet looks like at 
the end of this year that then wilJ be 
updated as fast as his computers can 
do their \acuum cleaning, likely every 
lew months. 

"When do different ethnic groups 
or special interests or certain busi- 
nesses become a presence on the 
Netr said KahJe. 35, a founder of 
Thinking Machines Corp., a Massa- 
chusetts company that at one tune de- 
signed powerful supe.'-computers. 
■*The Internet today i . really different 
than It was a year ago, and we have 
■ no good data on what it looked like 
back then." 

Stirring Interest, Concerns 

Just a few months old, Kahle's 
work already has attracted the atten- 
tion of those at the forefront of the 
digital revolution. Researchers from 
AT&T Corp. and Xerox Corp. have 
approached K<ihle with requests to 
study the archive. 

"It's extremely ambitious, but a 
great idea," s;ud Donald Heath, presi- 
dent of the Internet Society in Res- 
ton. "We don't know where this Inter- 
net IS going, and once we get there it 
.wUi be very instructive to look back.' 

But Uie project also has piqued the 
interest of pnvacy nghts advocates 
and copyright lawyers, who question 
how the archive will use its data. Will 
the archive continue to offer reveal- 
ing personal home pages long after an 
author has decided to pull the plug on 
them? Will saving the files that 
formed corporate Web sites violate 
copyright laws? 

"It raises some very interesting 
questions, " said Marc Rotenberg, di- 
rector of the Electronic E^nvacy Infor- 
mation Center, a Washington advoca- 
cy group. "It can't be the case that 
every time someone uses the Internet 
they have given up control of personal 
information absolutely and for all pur- 
poses.' 

Kahle said he has not yet decided 
how he will make the not-for-profit 



BREWSTER LURTON KAHLE 

IN PROFILE 



■ Ago: 35 

■ Education: Bachelor of 
science, from Massachusetts 
Institute of Technology, 1982 

■ Career highlights: Current - 
president and founder of Internet 
Archive 

1992-95 - Founder and 
president of Wide Area 
Information Servers Inc. 

1983-92 - Cofounder and 
scientist. Thinking Machines 
Corp. 



■ Family: wife, Mary; son. Calson, 2 

■ Home: San Francisco 

■ Last book read: 'The Discoverers' 
by Daniel Boorstin. 

■ Last movie seen: "City of Lost 
Children" 

■ Favorite Web site: www.fflycom. a 
tree software agent 

■ How long does he sperxl In front of 
a computer each day: "How long am 
I awake?" About nine hours. 




archive available to the public. He 
suggested his daU may be handled 
like census data— aggregate informa- 
tion is made public, but specific infor- 
mauon about mdividuais is kept confi- 
dential. 

"I'm dealing with every smgle intel- 
lectual property issue out there,' he 
said. "Pnvacy, copyright, pornogra- 
phy, import -export — we've got it all." 

Kahle said he also is accepting out- 
side help in creatuig the archive. He 
recently has been trying to obtain 
tapes of 1980s-vintage newsgroup 
postings from a University of Toronto 
adnuiustrator. 

A Smithsonian Link 

The archives have been working 
with the Smithsoman InsUtuUon smce 
February to collect World Wide Web 
sites dealuig with this year's presi- 
denUal election. Part of that collection 
now IS available on the Web at 
httpi/ywww.archive.org and mcludes 
copies of sites such as the Phil 
Gramm for President home page, 
which no longer is directly accessible. 
The collaboration with the Smithson- 
ian will result in an exhibit next year 
about the Web's impact on the 1996 
election at the NaUonai Museum of 
American History. 

Kahle, who left Thinking Machines 
in 1992 to start an Internet publish- 



ing company called W.A.IS Inc. — it 
was sold to Amenca Online Inc. of 
Dulles last year for about $15 niil- 
Lon — thus far has personally bank- 
rolled the entu-e eight-employee ar- 
chive project, to the tune of 
$400,000. 

While Kahle said he intends to keep 
the archives nonprofit, possibly join- 
ing with a large research library in 
the future, he is forming a for-profit 
venture that will sell the Web search- 
ing and storing technology developed 
at the archives. "We're developing 
some very exciting products to man- 
age massive amounts of data,' he 
said. 

But Kahle insists his primary inter- 
est these days is the arcliiving pro- 
ject, of which he speaks with a boyish 
enthusiasm. 

"There's something very e.xciiing 
going on here," he said. "Nobody re- 
corded television in it,s early days. I 
don't want to see thai happen with 
the Internet." 

FOR MORE INFORIMATION O 

To post on-line qt4£stiOM.t for tlie 
archive's organizers, arid to track 
how many Web pciges haixt been 
stored, click on the abore symbol on 
the front page of The Past 's sit£ on . 
the World Wide Web at 
http://www. washtngtoHpast.com 



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• ■July 31, 19% U 



BEST OFOtTHE BAY 




I grew up in Cheyenne, 
Wyoming, spent seven 
years in New York City, 
then moved to San 
Francisco. I like to tell 
friends it's like Goldilocks 
and the three bears: One city 
was too little. One city was 
way too big. And one city, 
this one, seems to be just 
right. 

It's just right for a lot of people. 
San Francisco has the best food, 
the best views, the best weather, 
the best culture, and yes, the best 
people too. So it's appropriate that 
San Francisco is where the Best 
Ofs originated. 

It all started back in 1974, when 
Esquire magazine decided to do a 
feature on "the best of America" 
and asked Bay Guardian publish- 
er Bruce B. Brugmann and the 
paper's staff to handle the San 
Francisco selections. We liked the 
idea so much we expanded on Es- 
quire's list and added many more 
of our own for a feature we called 
"The Best of San Francisco." And 
long after Esquire gave up the 
idea, we kept it going. 

This year we've produced the 
largest Best of the Bay package in 
Bay Guardian history, with more 
than 200 people, places, and things 
that have earned the right to be 
called the Best. Almost 800 of our 
readers have chipped in, too, nam- 
ing another 125 winners. 

From the best Thai restaurant to 
the best place to buy obscure hot- 
rod literature, from the best place 
to buy a computer to the best place 
to engage in machine meditation, 
we're pleased to present the Best 
of the Bay, 1996. 

Miriam Wolf 



EDITORS' CHOICE 

Food 15 

Essay by Dan Leone 15 

Best recovery from a fire-truck collision 17 

Best mole in the Mission 19 

Best place to cook your own raw meat 19 

Best way to get your five servings of 

fruits and vegetables 19 

Best cheese collective 19 

Best new trend in meatless dining 19 

Best DIY bar food 19 

Best pakoras 20 

Best place for chips and salsa al fresco 20 

Best cheap breakfast spot that will 

serve you a stiff drink 20 

Best after-work nosh for power types 20 

Best best-kept restaurant secret 20 

Best new shape for biscotti 23 

Best upscale truck stop 23 

Best place to shop for magazines 

while caffeinating 23 

Best fake American food 23 

Best reason to wake up in the Mission 23 

Best place to stock up for a 

wine-country picnic 23 

Best place for a wine-country picnic 24 

Best borscht 24 

Best chicken shawerma 24 

Best place for cheap licks in the Mission 24 

Best place to have an authentic 

Central American restaurant experience . . . .24 

Best Mexican pastries 24 

Best place to get a natural high and 

watch the world go by 27 

Most soothing restaurant bathroom 27 

Best store for all your subcontinent needs 27 

Best old-fashioned malt-and-burger joint 27 

Best affordable place for carnivores 

to eat with their vegetarian pals 

Best place to buy kangaroo steaks 28 

Best way to leam about cheese 28 

Best way to get a cholesterol high 31 

Best cheap eats by the bay 31 

Best sublime dish with an oddly prosaic name . .31 

Best taqueria outside the Mission District 31 

Best place to taste the 21st century 31 

Sweetest way to start the day 32 

Best place for affordable caviar 

with a vodka chaser 32 

Best eggs and pancakes fix 32 

Best California cabernet sauvignon 



Entertainment and nightlife . 

Essay by Neva Chonin 39 

Best drive-in to visit before 

they all become extinct 43 

Best photo booth in a club 43 

Best bar for seeing red 43 

Best spontaneous one-man sideshow 43 

Best blues radio show 44 

Best place to rent anime 44 

Best place to lose $100 while smoking 

a pack of cigarettes 44 

Best old-school pool hall 46 

Best place to relive your parents' childhood ... .46 

Best club for new wave oldies 46 

Best bar in which to sit beneath a copper shark 

and watch a guy bang on a Budweiser case . .46 
Best multilingual karaoke rooms with 

computerized song-selection system 48 

Best nightspot for incredibly strange music 

and people 48 

Best club at which to rediscover Pat Benatar . .50 

Best place to watch Hong Kong movies 50 

Best lesbian bar for everybody 50 

Best reason to name your child after a 

typesetting font 50 

Best place to experience graffiti as 

Neolithic cave art 51 

Best place to hear street music in 

Golden Gate Park 51 

Best Sunday brunch 51 

Best art on the wall and in your mouth 51 

Best airport bar 52 

Best place to scarf fish and chips, hear bagpipe 

music and indie rock, and gel a dose of 

Scottish culture 52 

Best way to see the Magic 52 

Best shoe-gazing extravaganza 52 




under $10 



.35 



; The best climbing 



Urban living 59 

Essay by Tim Redmond 59 

Best political quote 63 

Best air quality 63 

Best political hack 63 

Best 24-hour self-service Laundromat 63 

Best bad-attitude 'zine 63 

Best bathroom reading material 63 

Most sensitive cat-care service 65 

Best TV station for local politicos 65 

Best new community garden 65 

Best way to track down a long-lost friend 65 

Best books you never expected to 

see at the library .65 

Best catchers in the rye 65 

Best place for a garage sale 65 

Best neighborhood dog 65 

Best way to find an apartment 

if you have a dog or cat 66 

Best way to recapture one 

of the great moments in American history . . .66 
Best indication that the Internet 

has taken over 66 

Best underappreciated neighborhoods 66 

Best place to engage in machine meditation ... .68 

Best community-based Web sites 68 

Best Bay Area computer-game maker 70 

Best cheap hotel 70 

Best graphic designer with artistic integrity . . . .70 
Best and nearest place lo go 

for a small-town experience 70 

Best new paint job on a 

San Francisco public school 71 

Best get-yourself-outta-that-rut move 71 

Best vibe in the Mission 71 

Best bucolic Sunday afternoon in a city 71 

Best twisted free literature 71 

Outdoors 73 

Essay by Jon Maples 73 

Best underused local park 75 

Best suburban quarry swim 75 

Best bus to the slopes 77 

Best gym to encounter San Francisco's 

diverse cultural community 77 

Best toddler park in San Francisco 77 

Best rope swing 77 

Best mountain bike ride for beginners 78 

Best place to watch the sunset 

with your dog 78 

Best place to test out a new bike on the roof . . .78 
Best "natural" wonder that will 

have you saying, "Trippy!" 79 

Best place to body surf 79 

Best place to stay on a coastal bluff 79 

Best campsite 79 

Best climbing gym 80 

Best site for communing with 

the ghosts of summers past 80 

Best self-guided nature trail 80 

Best swimming beach 82 

Best way to escape from Alcatraz 82 

Best golf hole to shank an eight-iron 

into the sea 82 

Best coastal getaway 82 

Best way to get in shape for drinking 84 

Best bird watching 84 

Best hike for seeing waterfalls 84 

Best East Bay outing for wee ones 

and visiting family 84 

Romance 87 

Essay by Pia Hinckle 87 

Best movie theater for a hot date 89 

Best watery romance 89 

Best romantic getaway with 

old-hunting-lodge ambience 89 

Best romantic park 91 

Best place for San Franciscans to 

buy their sex supplies anonymously 93 

Best place to get slimy with your partner 93 

Best romantic and inexpensive presents 93 

Best place to break up with someone 93 

Best place to smooch in the New Main 93 

Best place to meet people with your dog 94 

Best starry-night stroll 94 



: July 31, 1996 ■ San Francisco Bay 



Shopping 97 

Essay by Stephanie Rosenbaum 96 

Best place to relive your childhood 98 

Best accoutrement for clowns 98 

Best way to liven up your table 100 




A wrenching read: The best place for 
obscure hot-rod literature. See page 104. 

Best Saturday afternoon grooves 100 

Best manga-model store 100 

Best place to buy steel-toed shoes 100 

Best place to pretend you're skydiving . . . .100 
Best listening station featuring 

unknown musicians 101 

Best independent bookstore 101 

Best neighborhood for 

used-book shopping 102 

Best place on Valencia to meet Marxists . . .102 

Best place to find vintage magazines 102 

Best bookstore you'd rather 

no one else knew about 102 

Best place to bike into the past 104 

Best place to buy vitamins 104 

Best place to find obscure 

hot-rod literature 104 

Best shopping nirvana for 

hip and hungry women 109 

Best place to buy happiness 

for less than $2.50 109 

Best video store 109 

Best painful but rewarding 

hair-removal experience 109 

Best friendly, honest used-car dealer HI 

Best friendly, honest mechanics Ill 

Best S.F. thrift store that's not quite 

in San Francisco Ill 

Best soundtrack store 

north of Hollywood Ill 

Best deals and most informed staff 

for dog and cat supplies Ill 

Best discount travel agency 112 

Best place to take your dying pumps 112 

CELEBRitY 
BESTS 

Keith McHenry 

Best San Francisco cop 2'' ° 

Conscioiis Daughters 

Best up-and-coming female rapper 4 

Alex Bennett 

Best politically correct comedian 4 

Chailotte Malilanl Swig 

Best place in the Mission to take 

visiting dignitaries 5 

Maisa Gomez || 

Best place in San Francisco 

to walk your dog 61 

IHayorWiUie Brown 

Best San Francisco politician who 

isn't Willie Brown 68 

Bay Ana Consumers' ChteUbook 

Best banks for checking accounts 69 

BiU Griffith 

t place for three rocks 78 

Bfiuzone 

Best bleeding-heart liberal cause 83 

Nina Hartley 

Best way to get in the mood 91 

Isadora Afanan 

Best way to approach an attractive strangei94 
Chartie Hunter 

Best mom-and-pop record store 101 



OUT OF THE PAST 

A look back at 22 years of Best of 
the Bay 115 

Best antique furniture restorer (1974) 115 

Best place to work with 

wild animals (1992) 115 

Best ghost town (1993) 115 

Best single-malt scotch selection (1990) . . .115 
Best public-transportation 

program (1986) 115 

Best brewspaper (1989) 115 

Best sauna (1977) 115 

Best marzipan pig (1975) 115 

Best working-class sushi bar (1987) 115 

Best recycling complex (1985) 115 

Best place for inexpensive 

relaxation (1995) 116 

Best place to buy used and refurbished 

golf clubs (1994) 116 

Best chocolate (1979) 116 

Best source of native plants on 

the peninsula (1991) 116 

Best place to wail for your 

ship to come in (1984) 116 

Best homemade movie-theater 

food (1988) 116 

Best view of the Bay Area (1978) 116 

Best swimming beach (1982) 116 

READERS' 
CHOICE 119 

Food 121 

Best new restaurant 121 

Best restaurant entree 121 

Best burger and fries 121 

Best veggie burger 121 

Best burrito 121 

Best ice-cream parlor 121 

Best Middle Eastern food 121 

Best pizza 121 

Best take-out 121 

Best Caesar salad 122 

Best sandwich shop 122 

Best Chinese food 122 

Best Vietnamese food 122 

Best Thai food 122 

Best pad Thai 122 

Best bakery 122 

Best highfalutin dessert 122 

Best Mexican restaurant 122 

Best chips and salsa 122 

Best vegetarian food 122 

Best supermarket 122 

Best natural-food store 123 

Best wine store 123 

Best place to go wine-tasting 123 

Best bread 123 

Best restaurant service 123 




The best little pigs go to 
marzipan. See page 115. 

Best coffeehouse 123 

Best seafood restaurant 123 

Best outdoor brunch 123 

Best restaurant to hang out in 123 

Best splurge restaurant 

(more than $20 per person) 123 

Best cheap restaurant 

($5 or less per person) 123 

Entertainment 125 

Best first-nm movie house 125 



Best rep film house 124 

Best local dance company 125 

Best art gallery 125 

Best photography gallery 125 

Best local theater company 125 

Best museum 125 

Best place to hear reggae 125 

Best open-mic music series 125 

Best jukebox 125 

Best local comedian 125 

Best place to see dance 125 

Best performance space 125 

Best dance club 125 

Best place to hear live rock 125 

Best place to hear hip-hop 125 

Best after-hours club 125 

Best brew pub 125 

Best place to play pool without waiting . . .126 

Best bar 126 

Best innovative cocktail 126 

Best gay bar 126 

Best lesbian bar 126 

Best local band 126 

Outdoors 129 

Best place to sit outside and 

people-watch 129 

Best place to play pickup basketball 129 

Best hiking trail 129 

Best place to jog 129 

Best bike path 129 

Best bike shop 129 

Best place to buy in-line skates 129 

Best beach 129 

Best place to sunbathe 129 

Best view 129 

Best children's playground 129 

Best place to escape the fog 129 

Best place to embrace the fog 129 

Sliopping 129 

Best new bookstore 129 

Best used bookstore 129 

Best comic book store 129 

Best place to buy vinyl 129 

Best place to buy CDs 129 

Best place to buy hip-hop music 129 

Best place to buy a computer 129 

Best place to get your watch 

battery replaced 130 

Best place to buy new furniture 130 

Best building-supply store 130 

Best men's clothing 130 

Best women's clothing 130 

Best place to buy children's clothing 130 

Best place to buy used jeans 130 

Best vintage clothing store 130 

Best vintage furniture store 130 

Best place to buy toys 130 

Best place to buy eyeglasses 132 

Best cosmetics store or counter 132 

Best place to buy shoes 132 

Best stationary store 132 

Best flower shop 132 

Best place to buy medicinal herbs 132 

Best place that's been around 

since at least 1966 132 

Romance 132 

Best romantic restaurant 132 

Best place for a clandestine lunch 132 

Best place to meet your personal-ad date . .132 

Best gift for your lover 132 

Best place to buy latex 132 

Best way to get free condoms 133 

Best place to get married 133 

Best topless bar 133 

Best outdoor spot to make out 133 

Best place for a proposal 

(or a proposition) 133 

Urban living 134 

Best Internet service provider 134 

Best local Web site 134 

Best place to spot celebrities 134 

Best new name for 3Com Park 134 

Best local newscast 134 

Best radio show 134 

Best write-in candidate for president 134 

Best reason to visit San Francisco 134 

Best adult education classes 134 

Best professional sports team 135 

Best way to find a roommate 135 

Best recycling center 135 

Best local cause 135 



Best nonprofit group 135 

Best new building 136 

Best street comer 136 

Best local 'zine 136 

Best fashion designer 136 

Best way to get on the 

Bay Bridge at rush hour 136 

Best street fair 136 

Best place to spot 

Willie Brown 136 

Best downtown comer 

to catch a cab 136 

Best community garden 136 

Best place to experience 

the counterculture 136 

LOCAL HEROES 

Sharen Hewitt 139 

Comelius Hall 140 

Nanci Clarence 141 

RafiqBilal 142 

Satti Hinon Odeye 143 

GailSilva 144 




It's dog-eat-dog: The best place to meet 
people unth your pooch. See page 94. 



The 1996 Bay 
Guardian Best Oi 
task force 



Miriam Wolf 
Associate Editor 

Jodi Levin 



Ondine Kilker, Elyse Hochstadt 
Contributing writers 

Dakkan Abbe, Savannah Blackwell, Brian 
Bouldrey, Amy Bourne, Diane Cantwell, Neva 
Chonin, Erika Cbristensen, Bill Citara, Ian 
Coder, Jennifer fjjughlin, Ron Curran, Elizabeth 
Demaray, Eileen Ecklund, R. Seth Friedman, 
Susan Gerhard, Bennett Grassano, Belinda 
Griswold, Glen Helfand, Pia Hinckle, David 
Israels, Jennifer Joseph, Henry Kumagai, Dan 
Leone, Reyna Lingemann, Alvin Lu, John Marr, 
Katharine Mayerson, Howard Myint, Jerod Pore, 
Johimy Ray Huston, Tim Redmond, Meir Rinde, 
Rose Rippey, Stephanie Rosenbaum, Marcy 
Sheiner, Nina Siegal, J. Arthur Skaggs, Amy 
Squires, Eric Stephan, Chuck Stephens, Candi 
Strecker, Jane Sullivan, Chris Torrens, Jean- 
Fabrice Vernet, Mandy Weltman, Anthony York, 
Doug Young, Jenna Ziman, Daniel Zoll 

Contributing artists and photographers 

Lx>ri Eanes, Mark Madeo, Winston Smith, 
Christine T. Anderson, Saul Bromberger, Phyllis 
Christopher, Lori Eanes, Gregory Fleischer, 
Gabrielle Gamboa, Phoebe Gloeckner, Pamela 
Hobbs, Rosemarie Lion, Mark Luthringer, 
Mark Madeo, Melinda Montanye, Neda, 
Judi Parks, Stephanie Rausser, Joe Rocco, Kurt 
Rodgers, Nicole Rosenthal, Eric Slomanson, 
Winston Smith, Susan Synarski, Steven 
Weissman, Jackie Wey 

Copy and production 

Beth Allen, Chris Bonis, Amy Changar. 
Lisa Dumas, Tom Dvorak, Ed Garcia, Chiaki 
Hachisu, Deirdre Lynds, Ten Mammini, Emily 
McMaous, Misty Neal, Deirdre Nemmers, 
Mary Penn, Sylvia Tan, Kurt 1 
Jacqueline Volin 



■ July 31, 1995 13 



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Thurs.-Sat. 5-midnight 
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I San Francisco Bay Guardian 



Jericho Productions & the S.F. Weekly Presents 

nighl only, Ihc Boomerang wilt be Iransfomied inlo a Mississippi juke joinl 10 
San Francisco return of 81 year olJ della bhies legend and Earwig recording an 

Honeyboy Edwards 

plus Lester Davenport (Earwig Records), Preacher Boy and 
lig Bones (Blind Pig Records) and Doug MacLeod (Audio Quest Music) 

Friday, August 2 
10PM* $10 

Tickets on sale 7pm day of show 



Al eighty- 
Edwards i 

praclilioners of the, pre-war era, acoustic de 
blues. A blues survivor, whose career spans 
over seven decades. Edwards is one of the few 

jiayed and traveled with Robert Johnson. Edwards was with 

he died in 1938, and is featured in the PBS Special "The Search for 





The Bay Area's BEST 
Unknown Record store! 



Buy Sell Trade 
New & used 

LPS & CDS 

Rock, indies, 

Funk& 

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collectibles 



Live in-Store Performance 
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Sunday, August 4 

Show starts around 7pm 

342 Divisadero 

atOak.SF 

open 11-8 M-Sat. Sun. 12-7 

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San Francisco Bay C 



) ■ July 31, 1996 49 



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and Alley Club, UQOFolsom, S.F. 
(415) 431-3332; Baby Judy's, 
Wednesday nights, Casanova 
Lounge, 527 Valencia, S.F. (415) 
863-9328. 



Best club 
at which to 
rediscover 
Pat Benatar 

Though the Pat Benatar lip- 
synching night was reserved for 
Trannyshack hostess Fleklina's 
birthday party, this glittering haven 
for cross-dressers always has room 
for the faded glory of new wave 
divas. The drag at the Tuesday- 
night glamour hut that is Tran- 
nyshack veers toward the freaky 
and conceptual, with performers of 
all persuasions giving it their twist- 
ed all to hit the audience with their 
best shots. The drink specials and 
celebrity cohostesses enhance the 
glamour. 399 Ninth St., S.F. (415) 
252-STUD. 



Best place to 
watch Hong 



see, but for sheer cavernous i 
phere, rows dotted with necking 
teenagers, and occasional cell- 
phone conversations, the Great Star 
provides the complete package. 
They don't make 'em like this any- 
more. 636 Jackson, S.F. (415) 982- 
6645. 



Best lesbian 
bar for 
everybody 

As co-owner Pat Ramseyer's girl- 
friend, Shelly, says, "This is an 
everyone bar." And labels aside. 
Wild Side West is a great neighbor- 
hood bar for just that reason. Ram- 
seyer originally opened the bar as 
the Wild Side in Oakland in the 
early '60s; it became (he Wild Side 
West when she moved it to North 
Beach a few years later. In 1977, 
when Ramseyer teamed up with 
her business partner, Nancy White, 
the bar moved again, this time to 
Cortland Avenue in Bernal 
Heights, where it still rests. The 
Wild Side is a warm, down-to-earth 
place to go to enjoy drink, snacks, 
and good company. Bask in the sun 
out on the back deck and garden, or 
during colder weather, enjoy the 
warmth from the fireplace that 
stands in the center of the bar. 424 
Cortland S.F., (415) 647-^99. 



Kong movies Best reason to 



Now this is a tough call. If you're a 
Hong Kong movie neophyte, your 
best bet is probably the ongoing se- 
ries at the UC Theatre, which culls 
select favorites from Hong Kong 
cinema's recent history. You could 
also attend one of the minifestivals 
that pop up periodically around the 
Bay Area or rent and watch some 
films on your own home-theater 
setup. (You do have one, don't 
you?) On the other hand, nothing 
beats a night of double-feature 
madness at the Great Star Theater, 
one of the two remaining first-run 
theaters in Chinatown, the other 
being the venerable World Theater. 
Choosing between the two is really 
a matter of what movie you want to 



name your 
child after a 
typesetting font 

Just recently the San Francisco 
Center for the Book opened its 
doors to the public. Directors Mary 
Austin (a print historian who loves 
printmaking so much she named 
her son Caslon, after the type font), 
Kathleen Burch (a typographer 
who works with Burning Books 
and has collaborated on projects 
with John Cage), and Susan Lan- 
dauer (an art historian) have creat- 



IQ46 ■ San Francisco Bay Guardian 



ed a dteati, wellMif space for book- 
and printmaking programs, exhibi- 
tions, and studio facilities. The cen- 
ter also has a resource library and 
offers workshops on experimental 
printmaking and book structure. So 
come on down and thumb your 
nose at all those folks who say the 
book is dead. 300 DeHaro, S.F. 
(415) 565-0545. 



Best place 
to experience 
graffiti as 
Neolithic 



cave art 



Catch the K, L, or M lines heading 
downtown, take a window seat on 
(he left side of the car (facing for- 
ward), and keep your eyes peeled. 
Just before pulling into the Castro 
Street station the train will pass 
through the remains of the old Muni 
Maritet Street station, which still 
boasts a bench or two and some 
fine samples of local graffiti art, 
such as those whacked, big-eyed 
'toon characters and mysterious, el- 
egant horses. Illuminated by the 
gated-over exit where the track 
once led to the outside, the old sta- 
tion exudes the haunted, romantic 
ambience of a place time forgot. 
Many regular commuters seem to 
look forward to this subterranean 
view — glance around you and 
you'll see lots effaces peering out 
the grubby windows. It's an urban 
ritual par excellence. 



Best place 
to hear street 
music in 
Golden Gate 



Park 



Just ask Paul, the psychologist-jazz 
saxophonist in the pinstripe shirt, 
or his buddy Sid, the architect-jazz 
guitarist, where the best spot is to 
hear locals blow some soulful 
notes. They'll tell you what all the 
musicians know: it's in front of the 
Conservatory of Flowers when 
someone is playing in the tunnel 
under JFK Drive. That tunnel of- 
fers the best acoustics in the city. 
And in the summertime, when 
tourists flock to the conservatory's 
front yard and Rollerbladers zip 
overhead, musicians have an in- 
stant audience. Short Corinthian 
columns adorn the tunnel's north 
and south entrances and add an art- 
ful atmosphere, as do the conserva- 
tory's landscaping and flower beds. 
"Some guys have to rent [practice] 
space," Paul says. "Me? I leave my 
horn in the trunk and come here on 
my lunch break. This is the place." 
Check it out any weekday after- 
noon, and weekends starting at 
around noon. The music ranges 



from airy jazz and rhapsodic violin 
concertos to rhythmic steel drums 
and hard-driving guitar. 



Best Sunday 
brunch 

If a pint of Guinness is a meal, then 
a Sunday afternoon Bloody Mary at 
the Deluxe Club is brunch in a 
glass. Chock full of tasty veggies, 
these Bloody Marys are spiked 
with judicious amounts of horse- 



radish and Tabasco and often are 
served up by Vice Grip, of the local 
swing scene. Although the regulars, 
in their vintage duds, are usually 
holding court at the front tables, 
formal dress is not required and 
seating is usually available. The at- 
mosphere is more relaxed on Sun- 
day afternoons than on Friday or 
Saturday nights, which tend to be 
loud and crowded, with swing 
dancers and enthusiasts packing the 
floor for the live music. If you're 
lucky you can grab one of the cov- 
eted booths. 1511 Haighl, S.F. 
(415) 552-6949. 



Best art on 
the wall and 
in your mouth 

The art at Swiss entrepreneur 
Donald Hess's stunningly remod- 
eled 93-year-old Napa Valley 
Hess Collection Winery isn't just 
the award-winning wines. It's 
also the contemporary paintings 
and sculptures by artists such as 
Frank Stella, Robert Motherwell, 



Theodoros Stamos, and Bruce 
Robbins that can be found in the 
winery's three-story art gallery. 
Take the glassed-in elevator to 
the top floor and work your way 
down. Don't miss the stunning, 
brilliantly executed painting by 
noted German artist Gerhard 
Richter, an enormous work that 
explodes with color and vitality. 
When you're finished repair to 
the cozy tasting room and give 
your taste buds a treat. 4411 Red- 
wood, Napa. (707) 255-1144. 



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Best airport 
bar 

Airports are generally rotten places 
to drink. The cocktails are over- 
priced and weak, the ambience is 
crowded-waiting-room chic, and 
the help is slow and surly. But not 
at the Crab Pot, which is tucked be- 
tween the bookstore and gates 68 
and 69 in the United terminal at 
SFO. The place serves local brew- 
pub beer and decent clam chowder 
at tolerable prices, but more impor- 
tant, the waiters and bartenders are 
actually friendly. And several times 
a day they all drop everything, put 
"Surfin' USA," on the jukebox, 
crank up the volume, and dance on 
their service trays, sliding around 
and hanging 10 while out-of-town 
visitors shake their heads in won- 
der. United terminal, San Francis- 
co International Airport. 



Best place to 
hear bagpipe 
music and 
indie rock, and 
get a dose of 
Scottish culture 

That pretty much sums up the ap- 
peal of Edinburgh Castle, a peren- 
nial Bay Guardian Best Of winner 
on Geary Boulevard in the Tender- 
loin. The fish and chips come 
wrapped in newsprint, just like in 
jolly old England. From Wednes- 
day to Saturday there's live music 
on the second floor. (Booker Ray 
Wilcox has featured emerging 
indie talents such as Actionslacks, 
Vegas de Milo, Vinyl Devotion, 
and J Church.) Also the home of 
the Scottish Cultural Arts Founda- 
tion, Edinburgh Castle occasional- 
ly has a bagpiper perform, for an 
authentic Scottish vibe. Various 
items on the walls also celebrate 
the Scottish-culture theme: check 
out the caber mounted on one 
wall; in essence a giant log, it's a 
projectile to be hurled in Scottish 
contests of strength. For those odd 
sorts who don't fancy hurling logs, 
there's a pool table, two dart 
boards, and a pinball machine. 950 
Geary. S.F. (415) 885-4074. 

Best way to see 
the Magic 

It's late Friday afternoon, you're 
up to your elbows in paperwork, 
your head is swirling, and the 
phone is ringing. It's time to es- 
cape to the theater so all those 
workaday worries will slip away. 
But you've forgotten to make plans 



for the weekend and you don't 
even know what's playing. Luckily 
you've already invested in a Magic- 
PASS for the Magic Theatre. Now 
you can just hop a cab down to Fort 
Mason and see a really hip, cool, 
arty play. The pass is one of the 
ways the Magic Theatre has made 
its plays accessible to even the least 
prescient theatergoer — you can 
choose which plays you want to see 
and when you want to see them. 
For $45 you can buy three passes 
so you can go to the theater three 
times by yourself or take two 
friends to one show. For $85 you 
get 6 passes, and for $1 10, eight. 
That's pretty cheap, considering 
that it usually costs as much as $24 
for a single ticket on a weekend 
night. Then simply fly off to the 
theater on a moment's notice. 

Here are two other Magic tricks: 
The last Thursday of the run of 
every play is "pay what you can" 
night — you pay whatever price 
you can afford. If you have a stu- 
dent ID, take advantage of the "stu- 
dent rush"; an hour before any 
Magic play, rush up to the box of- 
fice and buy a ticket for $7 (on 
Wednesdays, Thursdays, and Sun- 
days) or $10 (on Fridays and Satur- 
days). The deal is subject to ticket 
availability, but odds are pretty 
good that you'll get a seat. All 
nighttime performances (except 
those on Sundays) start at 8:30 p.m. 



— late enough so that you can actu- 
ally make it to the theater after 
work and a beer. The Magic has a 
hot calendar of new plays and the- 
ater works this year, so the passes 
are worth it. For more information, 
call (415) 441-8822. 

Best 

shoe-gazing 
extravaganza 

For a free and rockin' good time on 
weekend nights, shimmy on down 
to the corner of 22nd and Mission 
Streets. There, jamming al fresco, 
you will find the soon-to-be-infa- 
mous Rube Waddell. Named in 
honor of the alligator-wrestling, 
marble-playing patron saint of left- 
handed pitching, this band bridges 
the gap between rap and raga and 
plays the meanest one-string blues 
guitar this side of the moon. Armed 
with enough musical instruments to 
fill two shopping carts. Rube Wad- 
dell holds court most Fridays and 
Saturdays at around 10 p.m. Come 
see the best music this town has to 
offer and find out what Mack the 
Knife has to do with a shark attack. 
Most Friday and Saturday nights, 
10 p.m. or thereabouts, corner of 
Mission and 22nd Streets. <i^ 




You wouldn't expect to see 
Charlotte Maillatd Swig, 
San Francisco's chief of 
protocol, in a neighborhood with- 
out socialites, but Swig came up 
with enough places in this boho 
'hood to prove once and for all 
that she's a homegirl. "Mission 
Dolores of course is the biggie, 
but there are so many wonderful 
places to take people in the Mis- 
sion. There's the Galeria de la Raza, which showcases Hispanic 
artists. La Rondalla has wonderful Mexican food and a Christmas 
decor all year long, and there's La Cumbre Taqueria. Young people 
like the Elbo Room and the Albion. Then there's Cesar's Latin 
Palace and a wonderful store called the Lady Luck Candle Shop. 
There are murals throughout the Mission that are culturally signifi- 
cant and colorful, and theaters like the York and Roxie are great 
places to take visitors who want a taste of San Francisco." 



Best place in 
the Mission to 
take visiting 
dignitaries 



52 July 31. 1996 ■ San Francisco Bay 



Bulletin Board 



(415)255-7600 



(510)834-7600 



HERBAL SUPPLEMENT USERS 

Do You Use Ginseng, Ginsana, or 
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Sperm Bank Needs Donors 

All Ethnic Groups. Especially Jewish. Asian, African. Italian, 



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HEALTHY PREGNANT WOMEN SMOKERS 
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call WfWFC 510-901 -5 



JOE, I LOVE YOU 

From Your Cuddly Pig. 



SKYDIVE! 

Bay's Only Skydiving Center 

415-584-6332 



Insid* The Procast ol D«ep Fwling Thtnpy* 

by Author 

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Book Reading at The Depot, Mill Valley 

Tuesday, August 13th, 7:30PM 
MAKE VACATIONS YOUR BUSINESS 



Desperately Seeking Vladimir 

If you're not doing anything nexl July 5th, 
Let's get hitched. Love Inga. 

Bay Area Model Mugging 

Self Defense For Women 

1 -Day Classes -i- 5-wk courses offered. 

Simple, effective techniques. Supportive 

instructors. Call 1-800-77FIGHT. 

Vietnam Veterans with 

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drugs or alcohol Participants w 



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Credit problems fixed quickly & affordabty! 
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MentorNet 41 5-664-1 091 

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HAPPY BIRTHDAY 

RICK & LYNDA 

The LEO couple with ever 

lasting love. Hugs and Kisses. 

Aunt DebPeb 

Honeyboy Edwards 

Friday August 2 10PM $10.00 

Club Boomerang 1 840 Halght 41 5-387-2996 

BEAD BRAIN 

Jewelry & Beatl Outlet For SF Designer Jan Mictiaels 

Design Classes. Call'for'lnto:"415-621-8815. 



$8 Voice l\/lail $8 

All US- Cities/Uve/Pa9ers;800-900/ 1 -a00.34e-0500. 

NEW WAVE CITY 

First & Foremost Roaming 80's Dance Party 

Friday, August 9th @ THE 

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Live BERLIN concert, followed 

by NEW WAVE CITY'S 

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For Upcoming Events, call 415-675-LOVE. 

LIVE + VOICEMAIL 

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Investors Wanted! 

weekly Flecordeamsg 1-800-599-8636 



Archival Audio 41 5-256-9311. 
SIRIUS CONNECTIONS 

Flat-rate dial up access, full email, WWW, 
news & more. $25 setup, no hourly charges. 

INTERNET $15/mo 

Local call from Oakland-Berkeley-SF-SM-SJ 

Web registration: http;//www.sirius.com/ 

info@sirius.com, 415-284-4700 

RECENTLY QUIT COCAINE? 
Need Help In Staying Clean? 



h supply $24 95 1-800-9 



Telefundraisers/Activists 

Friends of the River 

"elephone activists needed to hefp keep our rivers v 
Come work for California's premie 



CHEAP VOICE MAIL-$4 



HI MOMSTER & 
TEDSTER 



SAIVIE SEX MARRIAGE 

Should it be allowed and why? 

Your opinion counts - voice it! 

Call 1-900-370-0330 



Bankruptcy & Injury 

Michael Papuc. Attorney. 415-292-3081 

BAiNiKRUPlCY 



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FREE CONSULTATION 415-543-5572 

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:l Your Conviclions Working For The Worlds Most Dynaniic 
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RECEiV ' ^^:. '.^r:--v^'^'-:"-'. timi 
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Fun * Friendship * Romance & Renewal 

Join Us For Israeli Dancing * Klezmer Music * 

Volleyball * Twister * Great Food & More! 

Sunday, 8/4, 1 1 -4pm, GG Park's Marx Meadow $5 admission 
Call The Info Hotline @ 346-1 720, ext 59 tor details 

Yoga for Beginners 

First class free, 1200 Arguello Sivananda Center 681-2731 

DRUG TEST 

Food & medications to avoid Clean system fast Send $9 95 
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'f ' * ¥-■#' 




■A 






^M I y 



r BAdARai & COMPANY LIMITED ©1996 BACARDI 



212 July 31 , 1996 ■ San Francisco Bay Guardian 



For expanded Bulletin Board, turn to the previous page. 



tDI-MARTINI U:S.A.. INC.. MIAMI, FL RUM SP^gO^g^fWi.^ 





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MARCH 25, 1996 



NEWSMAGAZINE 




The Dragon Wakes: China's challenge 
and how to deal with it {see World) 



The Mechanics of Thought: Is it humanly 
possible for the man-made to think? (see Cover) 



The Stones of Camelot: Jackie O s 
treasures on the block (see The Arts) 



CONTRIBUTORS 4 

LETTERS 6 

NOTEBOOK 15 

WASHINGTON DIARY 16 

CALVIN TRILLIN 20 

MILESTONES 23 



NATION 

CAMPAIGN '96: Bob and Bill's Beltway Bake-Off 26 

The scene has shifted from the green fields of the Republic to 
the hard pavement of Pennsylvania Avenue. The situation is 
unique in American history— a Senate majority leader and a 
President, opposing candidates who must find some way of 
working together while trying to knife each other in the back 
Tom Daschle: Leader of the block party 30 

BOB DOLE: The Lone Ranger 31 

Never one to surround himself with advisers, the Senator 
now finds himself surrounded 

THE ALSO-RANS: How (Very) Green Was My Valley 32 

Bottoming out in the Presidential race can pay off big time 

WORLD 

CHINA: What Should the U.S. Do? 36 

War games near Taiwan, human-rights abuses, pirating 
of software, an ongoing nuclear-weapons program— China 
is defying Washington on many counts. What should the 
response be? The strategy that is in place, only more so 

SCOTLAND: The Monster and the Innocents 44 

A gunman runs amuck, and a small town is scarred forever 

BUSINESS 

CORPORATE WELFARE: Why Subsidies Survive 46 

In an election year. Congress has surrendered in the battle 
for reform 



TOBACCO: A Breach in the Wall 47 

If one company settles a suit, can the others be far behind? 

RETAILING: Luxury's Gaudy Times 48 

The rich are flaunting it again, to the delight of upscale stores 

SCIENCE AND SOCIETY 

COVER: Can Machines Think? 50 

They already do, if Deep Blue's chess prowess is any 
indication, and that has created something of an identity 
crisis for homo sapiens— thinking man. But just because 
computers process information doesn't mean they have 
feelings, a sense of humor or that intangible quality we call 
consciousness 

Garry Kasparov: Close encounter with a smart machine 55 

Artificial Intelligence: The race to get there first 56 

MEDICINE: A Living Miracle 60 

Joined for life, the Hansel twins are a lesson in cooperation 

THE ARTS 

CULTURE: Sotheby's sale of Jacqueline Kennedy Onassis' 

impeccably tasteful belongings is turned into a rehc hunt 66 

CINEMA: Five good reasons why you should care about the 

Best Editing Oscar 68 

SHOW BUSINESS: Nathan Lane flounces toward stardom 70 

ART: A new look at Corot, the 19th centuiy nyr ph painter 

who offers glimpses of modernism 71 

BOOKS: Stephen L. Carter prescribes a big dose oi Integrity 73 

SPORT: The best horse in the world is going to Dubai to 
chase history 75 

PEOPLE: Sly acting; the Curtis sisters 77 

ESSAY: Lance Morrow on the Scottish massacre 78 

cover: Digital photomontage for Tim f. by James Porto 



TIME (ISSN 0040-781X) is published weekly except for two issues combined into one at year-end for $59.94 per year by Time Inc. Principal Office; Time & Life Building, i:>xkefeller Center, New York, N.Y., 10020-1393. 
Reginald K. Brack Jr., Chairman; Don Logan, President, CEO; Joseph A. Ripp, Treasurer; Harry M. Johnston, Secretarv. Second-class postage paid at New York, New York, ,:iiid at additional mailing offces. © 1996 Time Inc. 
All rights resen/ed. Reproduction in whole or in part without written permission is prohibited. TIME and the Red Border Design are protected through trademark registrai ion in the United States and in the foreign countries 
where TIME magazine circulates. POSTMASTER; Send address changes to TIME, P 0, Box 30501 , Tampa, Florida 33530-0501 . For subscription queries, call Custom r Service at 1-800-843-TIME D 





CONTRIBUTORS 

ROBERT WRIGHT is accustomed to thinking 
of the human mind as an intricate machine. 
He has long been fascinated with evolu- 
tionary psychology— a field that views the 
brain as a mechanism built by the genes 
and shaped by natural selection— and has 
written extensively about it, both in his 
1994 book. The Moral Animal, and in a 
Time cover story last August, "Twentieth 
Century Blues." In this week's cover story, contributor 
Wright examines the philosophical questions raised by "arti- 
ficial intelligences" such as Deep Blue, the chess-playing 
computer that nearly defeated the human world champion, 
Garry Kasparov. In addition, Kasparov writes about the mo- 
ment during the match when he first sensed that he was in 
the presence of a real, albeit somewhat alien, intelligence. 

r^^l^ CLAUDIA WALLIS certainly has plenty to 

^^tf^JB^ *^°- ^^^ veteran Time science writer is the 
mother of three and the managing editor 
of Time For Kids, which reaches nearly 
800,000 fourth-, fifth- and sixth-graders 
each week. But she could not resist the op- 
portunity to tell the remarkable story this 
week of Abigail and Brittany Hensel. "I had 
read Life magazine's cover story about the 
conjoined twins," she says, "and was moved to tears." Wal- 
lis teamed up with reporter Jen Doman, who befriended the 
Hensels last fall and secured exclusive rights to their stoiy for 
Life. Says Wallis: "She did a remarkable job of documenting 
one family's efforts to build an ordinaiy and happy life for two 
children born under extraordinary circumstances." 

BILL SAPORITO, Time's new business edi- 
tor, joins us from our sister publication 
Fortune, where he spent a decade writ- 
ing about corporate takeovers and editing 
the magazine's Newstrends section. "The 
world of commerce has never been more 
complex, or more important, given our 
shared anxieties about layoffs and re- 
structuring," says Saporito. At Fortune 
he loved the fast pace of Newstrends' late-breaking stories 
but not the magazine's fortnightly schedule. "It drove me 
crazy to sit there for a week and not be able to jump on a 
hot story," he says. Now, at this weekly newsmagazine, he 
gets to double his output and his pace, which is fine with 
him and with us too. 

KAREN TUMULTY learned two years ago 
that Tom Daschle is not entirely the mild, 
cautious politician he pretends to be. As a 
reporter for the Los Angeles Times, she 
spent several days with the U.S. Senator 
m his home state. South Dakota. Never an 
enthusiastic flyer, she was dismayed one 
foggy night to learn that Daschle had 
booked them onto a tiny airplane. Even 
worse, he let her know with a big grin that he planned to 
pilot the craft himself. This week the tables are turned. 
Daschle is Clinton's point man on Capitol Hill, and Tumulty 
is Time's congressional correspondent— steering us through 
a bumpy presidential campaign that will be waged, by and 
large, inside the Beltway. 





He'll be using a Macintosh personal computer because a 
Macintosh will be there for him to use. 

He'll be using a Macintosh because no other computer in 
the world makes it so easy for people to learn and explore 
and discover So it can help him from his first day 
of school to his last day of college and througliout ■%, 
the rest of his life. 

And he'll be using a Macintosh because millions ot 
people like Susan Kohler, a working mom from Reston, 
Virginia, simply wouldn't have it any other way :-' 

''Learning doesn't end at school" Susan says. 
''With a Macintosh at home., my kids can do 
their homework atid have fun doi?ig it A?idl 
can be involved in the experience. We love our Mac" 

With technology changing so quickly, it's only natural to 
wonder whether the computer you buy today will still be around 
tomorrow. That's why Apple has always designed Macintosh for 
tomorrow as well as today 

Only Macintosh makes it so easy to learn. 

Macintosh WcLs designed to be the perfect family computer: 
easy to set up, easy to learn, easy to use. And easy to afford. 

If you have children in school, chances are they're already 
using an Apple! Because more schools use Apple than any other 
brand of computer 

In fact, of the 97% of U.S. school districts using computers, a 
full two-thirds use Apple computers - three times more than our 
nearest competitor 

More schools use Apple computers for multimedia. And 
more schools and universities use Apple computers for accessing 
the Internet. So bringing a Macintosh home means you're actually 
bringing learning home. 



^ 



time, march 25, 1996 



rfnvi'iderjmjor hileyml a 



smiiiired. ©19% Affle Comlniler. i 



WW, we can't be sure what car 
or what music he'll be listening to. 
he'll still be using a Macintosh. 




Of course, notliing briiigs learning 

to life like the power of multimedia. Which is why no 

computer malces it easier for your family to experience and create 

multimedia than Macintosh -from building an interactive book 

report to editing the family video album. 

And because it also comes with powerful software to access 
the Internet^ exploring cyberspace on a Mac" is as easy as pointing 
and clicking. Opening up a whole new world of possibilities for 
you and your family 

Only Macintosh makes it so easy to explore. 

The magic of a personal computer is that you can change 
what it does simply by changing the software. 

With over 9,000 software titles now available for Macintosh, that 
means a Mac can become just about anything you want it to be. 
From a science lab to an artist's palette to a powerful financial man- 
agement tool. And you can expect to see thousands more great 
titles coming in the future. 

The latest multimedia entertainment titles. The most powerful 
business programs. The hottest games. The most popular home 
office programs. Educational software galore. 



You'll find all of them - and more - available for the Macintosh. 
Only Macintosh makes it so easy to grow. 

The whole idea is to make owning a computer a satisfying, 
enriching experience -now, and for years to come. 

Which is why Apple's unique plug-and-play pliilosophy 

makes it incredibly easy to add new capabilities 

to your Mac today, tomorrow and even years 

down the road. 

If you want to add a printer, just plug it in. If you need more 

storage space, just plug in a hard drive. And so on. 

"My PC-using friends nearly croak when they see it all 
ivorking perfectly. And no horror stories. I just plugged every- 
thing in" says Charles Hoff, a father and Macintosh owner living 
in Thousand Oaks, California. 

No other computer makes it this easy to grow when you do. 

Only Macintosh is so well liked. 

It all helps explain why Apple is one of the most recognized and 
loved brands in the world. Why brand loyalty to Apple is the higliest 
ill the industry And why Apple ranks number one hi reliability and 
service, requiring less customer support than an\' other computer 

In fact, 90% of Macintosh owners buy a M.icintosh again when 
making a second purchase- the higliest repiu'chase rate of any 
computer manufacturer 

With 56 million people around the world firmly committed 
to the Macintosh way of working, learning and playing, there's one 
thing you can always be confident of 

That Apple will continue to provide innovative tools and solu- 
tions designed to empower each and every 1 1 ^^ 
member of your family Appic ''Hk 

Even those members yet to come. http://aiways.appie.com 



5 oj Apple Computer. Inc. Mac is a hmiemark of Apple Computer, Inc. All Machilosb compiilers are desif>iie(I to he aaessihle It 



E T T E R S 



Blowing the Whistle on Nuclear Safety 

44 As long as we have to live with 
she threat of radioactive disaster; 
nuclear power must be made safe, 
whatever the cost. 55 

Natalie Hildt 

New London, Connecticut 




YOUR ARTICLE ON NUCLEAR SAFETY WAS 

an eye-opener, and your effort to address 
a veiy serious problem is commendable 
[Business, March 4]. My heart goes out 
to George Betancourt, George Galatis 
and the gutsy engineers who fought the 
management of Northeast Utilities. 
Kudos to them for their selfless devotion. 
The role of the Nuclear Regulatory Com- 
mission should be investigated. Where 
can people go if the regulatoiy agency 
and utilities companies collude? How 
can we protect ourselves? It is time for a 
shake-up of the nrc. 

Sudip Guharoy 
Rancho Mirage, California 



THE COURAGE OF WHISTLE-BLOWERS 

Galatis and Betancourt in fighting for 
quality and safety in the nuclear-power 
industry is inspiring. To the Georges, I 
say please don't give up-you belong 
with the true heroes of this countiy. 

Allan Bazzoli 
Mount Vernon, Ohio 

PLACING THE MILLSTONE NUCLEAR PLANT 

on the NRC's watch fist is a significant and 
serious matter, hardly a "wrist slap," as 
Galatis characterized it. Northeast Utili- 
ties has already undertaken aggressive 
steps to correct the situation, including a 
total reorganization of its nuclear group 



and the creation of a first-ever office of 
nuclear safety and oversight. We have 
pledged to go beyond the requirements 
of regulatory compliance to earn back 
the public trust and demonstrate our 
passion for safety. In the end, our busi- 
ness objectives can be met only after we 
first satisfy our safety goals and our 
employees' concerns. 

Ted C. Feigenbaum, Executive Vice 

President and Chief Nuclear Officer 

Northeast Utilities Service Co. 

Hartford, Connecticut 

YOUR ARTICLE INCLUDED ANALYSES FROM 

a Holtec consultant who reportedly pre- 
dicted that a loss of primary cooling in a 
Millstone 1 fuel pool could result in a 
"slow boil." These analyses were made 
for a wholly artificial and improbable 
scenario of events. Pool temperatures in 
the real world seldom exceed lukewarm 
levels. The engineers, technicians and 
managers at Millstone have dedicated 
their careers to coaxing energy from the 
atom because they believe in the inher- 
ent safety and environmental benefits of 
nuclear power. They deserve your ac- 
claim, not your scorn. 

Kris P. Singh, President and CEO 

Holtec International 

Cherry Hill, New Jersey 



Stephanopoulos on Whitewater Coverage 

FOR YEARS I WANTED TO MAKE THE COVER OF TIME IN THE 

worst way. And I did. On April 4, 1994, there I was, in mug-shot 
gray, looking worried over President Clinton's shoulder in the 
Oval Office, underneath an accusing headline: deep water: 

HOW THE PRESIDENT'S MEN TRIED TO HINDER THE WHITEWA- 
TER INVESTIGATION. The stoiy wasn't much prettier than the 
picture. The report, stocked with blind quotes, suggested I was 
steps away from the slammer because of the temper tantrum I 
threw when the law firm of Jay Stephens, a Republican former 
U.S. Attorney and an outspoken political opponent of the Pres- 
ident, was hired by the Resolution Trust Corporation to inves- 
tigate Whitewater. Two years later, nothing remains of the 
criminal charges leveled against me by anonymous sources in 
Time except, of course, my yet-to-be paid legal bills. But 
Stephens stayed on the job. Two weeks ago his firm issued its 
final report to the Federal Deposit Insurance Corporation. 

Here is what it found after reviewing all the available evi- 
dence, including the billing records discovered early in Janu- 
aiy: Not only is there "no reasonable basis" to pursue a claim 
against the Rose Law Firm, but neither Hillary Clinton nor the 
Rose firm "knowingly aided and abetted a fraud." The report 
z concluded that Mrs. Clinton's share of the Rose firm's income 
? from Madison Guaranty Trust was "trivial . . . less 
; than $20 a month," and that the 1988 decision by the 
1 Rose firm to discard certain records "occurred in a 
f seemingly innocent context, as part of a general 

effort to discard unneeded files." And the conspira- 
i cy charges involving Madison Guaranty owner 
; James McDougal and the Rose Law Firm? Nothing 
f to them, says the report: "It simply would not be per- 

1 suasive to argue that, for $21,000, McDougal cor- 





rupted the Rose Law Firm and convinced half a dozen lawyers, 
most of whom he did not know, to join him in a scheme to vio- 
late the law ... the conspiracy theory is hopelessly flawed." 

Good news. But when I read Time [March 11], I couldn't 
find anything on Whitewater. I didn't really expect a cover sto- 
17, but no story at all? Time carried eight pages on the royal 
divorce, but not one word about an independent, nonpartisan 
investigation that corroborated what President and Mrs. Clin- 
ton had said all along about the most serious Whitewater-relat- 
ed charges. Time's attempt at balanced coverage came last 
week. One sentence on the Stephens report appeared in a cov- 
er story [Book Excerpt, March 18] consisting largely of recy- 
cled gossip critical of the President and Mrs. Clinton. Time's 
competitors didn't do much better. U.S. News 6- World Report 
managed a sentence, and Newsweek buried the findings in a 
broader story about Hillary's troubles. Of the major television 
networks, only ABC assigned a reporter to the story, but in the 
20 shows Nightline has devoted to Whitewater over the past two 
years, the Stephens report has barely been mentioned. 

Is it too much to ask that a serious report effectively exon- 
erating the Clintons and their associates get more than a pass- 
ing mention in the nation's press? If an allegation of wrong- 
doing is front-page news, should not an apparent vindication 
merit equivalent time and space? Am I cynical to believe that a 
damning report would have received more atten- 
tion in America's newsrooms? I don't think so. My 
instinctive reaction to Stephens' appointment by the 
RTC was dead wrong. His final report was thorough, 

fair and unbiased. That's more than can be said for 

the way it was covered by the national media. When 

it comes to Whitewater, good news is no news at all. 

George R. Stephanopoulos, Senior Adviser to the 

President for Policy and Strategy, Washington 



time, march 25, 1996 



M 



TRUST YOUR DAY TO SELDANE* 



1 



You trained for weeks. Sweated it out. 
Pushed hard. Carbed up. All in preparation 
for your first lOK. But the inorninj; of the 
race, the pollen count was off the chart. 
And with your seasonal nasal allergies, you 
thought you could run but you couldn't 
hide. That's why you may need the 
assurance of Seldane. 

The Seldane difference 

Seldane can give you relief from a range 
of major allergy symptoms. Even more 
important, Seldane can give you all that 
relief while letting you stay alert*— unlike 
some over-the-counter remedies that may 
leave you feehng spacey or drowsy. (In 
clinical studies, Seldane caused no more 
drowsiness than a placebo [sugar pill].| 

Who should not take Seldane 

Seldane isn't for everyone. There are 
risks for some people. So read this message 
thoroughly to find out specifically who 
should not take Seldane. 



WARNING: YOU JWUST NOT TAKE 
SELDANE if you are also taking the pre- 
scription antifungal medicines itracona- 
zole (Sporanox®) or ketoconazole (Nizoral®) 
or the prescription antibiotics eryth- 
romycin, clarithromycin (Biaxin®), or 
troleandomycin (TAO®), or if you have 
liver disease. DO NOT TAKE MORE 
THAN the amount prescribed by your 
doctor. Seldane has been associated with 
rare occurrences of abnormal heartbeats, 
heart attack, and death under these 
conditions. Please see unportant additional 
mformation on an adjacent page. 



Due to similarities in the drugs, it is 
also recommended that the antifungal 
drugs fluconazole, metronidazole, and 
miconazole, and the antibiotic 
azithromycin, not he used with Seldane. 

Tell your doctor before taking Seldane 
if you have any liver or heart problems. 
Also, while using Seldane, tell your doctor 
if you ever feel faint, become dizzy, or 
have any irregular heartbeats. 

Do not use Seldane with any other 
prescription or nonprescription medicine 
without first talking to your doctor. If you 
become pregnant or are nursmg a baby, 
talk to your doctor about whether you 
should take Seldane. Your doctor will 
decide whether you should take Seldane 
based on the benefits and risks. 

It is always important to tell your 
doctor about any medicines you are using, 
including antifungals and antibiotics. 

Your doctor knows what is best for you 

Because Seldane is a prescription 
medicine, only your doctor, or other 
health care professional authorized to 
prescribe, can decide if you're a candidate 
for it. Ask if you can join the millions of 
people who trust their allergies to Seldane. 
So on the day of your big race, you'll know 
you did your personal best. 

To discover how to help control your 
seasonal allergies and receive the 
FREE, fact-filled allergy newsletter, 
AllerDays, call: 

1 800 593-3145 



(terfenadine) 60 mg tablets 

AVAILABLE BY PRESCRIPTION ONLY 



Seasonal Allergy Relief That Lets You SKy Alert 



■ In clinical studies involving over II, 000 patients, the reported incidence of drowsiness with Seldane 
(5.8%) did not differ significantly from placebo (6.9%). 
SEE ADDITIONAL IMPORTANT INFORMATION ON AN ADIACENT ivvGE. 

'01996, Hnechst M.irion Rmisscl, Inc. 




Brief Summary of 

Prescribing Information as of January f 995 

SELDANE' 

(terfenadine) 

60 mg Tablets 



WARNING BOX 
OT INTERVAL PROLONGATION/VENTRICULAR ARRHYTHMIA 
RARE CASES OF SERIOUS CARDIOVASCULAR ADVERSE EVENTS INCLUDING 
DEATH, CARDIAC ARREST TORSADES DE POINTES. AND OTHER VENTRIC 
UUR ARRHYTHMIAS. HAVE BEEN OBSERVED IN THE FOLLOWING CLINICAL 
SEniNGS, FREOUENTLY IN ASSOCIATION WITH INCREASED TERFENADINE 
LEVELS WHICH LEAD TO ELECTROCARDIOGRAPHIC QT PROLONGATION: 

1. CONCOMITANT ADMINISTRATION OF KETOCONAZOLE (NIZORAL) OR 
ITRACONAZOLE (SPORANOX) 

2. OVERDOSE. INCLUDING SINGLE DOSES AS LOW AS 360 MG 

3. CONCOMITANT ADMINISTRATION OF CURITHROMYCIN, ERYTHROMYCIN 
OR TROLEANDOMYCIN 

4. SIGNIFICANT HEPATIC DYSFUNCTION 

TERFENADINE IS CONTRAINDICATED IN PATIENTS TAKING KETOCONAZOLE. 

ITRACONAZOLE. ERYTHROMYCIN, CLARITHROMYCIN. OR TROLEANDOMYCIN. 

AND IN PATIENTS WITH SIGNIFICANT HEPATIC DYSFUNCTION. 

DO NOT EXCEED RECOMMENDED DOSE, 

IN SOME CASES, SEVERE ARRHYTHMIAS HAVE BEEN PRECEDED BY EPISODES 

OF SYNCOPE, SYNCOPE IN PATIENTS RECEIVING TERFENADINE SHOULD LEAD 

TO DISCONTINUATION OF TREATMENT AND FULL EVALUATION OF POTENTIAL 

ARRHYTHMIAS- 

(See CONTRAINDICATIONS, WARNINGS, CLINICAL PHARMACOLOGY, AND 

PRECAUTIONS: DRUG INTERACTIONS,) 



DESCRIPTION 

SELDANE (terfenadine) is available as tablets for oral administration Each tablet 
contains 60 mg terfenadine. Tablets also contain, as inactive ingredients: corn starch, 
gelatin, lactose, magnesium stearate, and sodium bicarbonate 
INDICATIONS AND USAGE 

SEL'-, lie relief of symptoms associated with seasonal allergic 

rlir ■ , 'I ,™rrhea, pruritus, and lacrimation, 

Ciir: ; ' :■■ ■ :, .; lu date have not demonstrated effectiveness of terfenadine 

CONTRAINDICATIONS 

CONCOMITANT ADMINISTRATION OF TERFENADINE WITH KETOCONAZOLE (NIZORAL) 
OR ITRACONAZOLE (SPORANOX) IS CONTRAINDICATED TERFENADINE IS ALS(5 
CONTRAINDICATED IN PATIENTS WITH DISEASE STATES OR OTHER CONCOMITANT 
MEDICATIONS KNOWN TO IMPAIR ITS METABOLISM, INCLUDING SIGNIFICANT 
HEPATIC DYSFUNCTION, AND CONCURRENT USE OF CLARITHROMYCIN, ERYTHRO- 
MYCIN, OR TROLEANDOMYCIN QT PROLONGATION HAS BEEN DEMONSTRATED IN 
SOME PATIENTS TAKING TERFENADINE IN THESE SEHINGS, AND RARE CASES OF 
SERIOUS CARDIOVASCULAR EVENTS, INCLUDING DEATH, CARDIAC ARREST AND 
TORSADES DE POINTES, HAVE BEEN REPORTED IN THESE PATIENT POPULATIONS 
(See WARNINGS and PRECAUTIONS Drug Interactions.) 



Terfenadine undergoes extensive metabolism in the liver by a specific cytochrome 
P-450 isoenzyme. This metabolic patliway may be impaired in patienis with hepatic 
dysfunction (alcoholic cirrhosis, hepalilis) or who are taking diugs inch as ketocona- 

zole. Itraconazole, or clarilhm!- "•• ;— i„-,<— .,,^1,, (mjcfoiide 

anhbiotics), or other potent in'i' ' ■ .viih this metab- 

olism can lead to elevated led' :)l prolongation 

and increased risk of ventrn i,|i-;, de polntes, 

ventricular tachycardia, and , ' ' ' 'imended dose, 

SELDANE IS contraindicafed lor use by patients wilh these conditions (see WARNING 
BOX, CONTRAINDICATIONS, and PRECAUTIONS: Drug Interactions) 
Other patients who may be at risk for these adverse cardiovascular events include 
patients who may experience new or increased QT prolongation while receiving 
cetlain drugs or having conditions which lead to OT prolongation These include 
patienis taking certain antiarrhythmics, bepridil. certain psycholropics. probucol. or 
asfemizole, patients with electrolyte abnormalities such as hypokaiemia or hypomag- 
nesemia, or faking diuretics with potential for inducing electrolyte abnormalilies, and 
patients with congenital QT syndrome SELDANE is not recommended tot use by 
patienis with these conditions. 

The relationship of underlying cardiac disease to the development ol ventricular 
tachyarrhythmias while on SELDANE therapy is unclear; nonetheless, SELDANE 
should also be used with caution in these patients, 
PRECAUTIONS 



Patients taking SELDANE should receive the following information and instructions. 
Antihistamines are prescribed to reduce allergic symptoms Patients should be advised 
to lake SELDANE only as needed and NOT TO EXCEED THE PRESCRIBED DOSE 
Patients should be guestioned about use of any other prescription or over the counter 
medication and should be cautioned regarding the potential for life threatening arrhyth 
mias with concurrent use of keloconazole itraconazole clarithromycin erythromycin 
ortnilpimluiii i in PitienI should be advised to consult the physician before concur 
iH (ith terfenadine Patients should be guestioned about 

fii I irfing SELDANE therapy since the drug should be used 

in It the potential benefit justifies the potential risk to fetus 

(II 111 instructed to store this medication in a tightly closed 

III jiay from heal or direct sunlighl and away from children 

DruQ Interactions 



Spontaneous adverse reaction reports of pabents taking concomitant keloconazole with 
recommended doses of fertenadmi- dfinoiislrate OT mlerval pfolnngilinn and rare 
senous cardiac events eg dnll i i i • i lini] 

torsades de pointf s Pharni i it 

the metabolism of terfenadim i i 

of unchanged ferienadine i i 1 1 

OT and QTc intervals Concomitanl aiiniuii lialiun ul kelucunazule am] terienadiiie is 
ifseeCONTPAINDIIATIONS WARNINb"^ jiid ADVERSE REA(TIONS) 



COIIlMllllll 1 Ii' 


1 1 1 EALTIONS ) 


n 


1 liilingflucona 


ii 1 


1 11 J ij uic concomitant 


u Pill 'ill 1 pinrtiiil iilhfeiftnidini i mil r 


rommended pending full examination 


of potenlial interactions 




Macrohdes 






pr/fhromycm and chrithiomycin can 


exert an effect on terfenadine metabolism 1 




that of keloconazole but to a lessei e i 


1 


decreases the clearance of the terfenadmr « i 


» 


plasma levels is still under investigation A i 


il 


prolongation with ventricular arrhythmi i 


ull 


reported in patients receiving erythromyi m 





mromycin or 

ININGS and 
intcraclions 



genicity Microbial and micronucleus test assays with terfenadine have revealed no 
evidence of mutagenesis 

Reproduction and fertility studies in rats showed no effects on male or female fertility 
at oral doses of up to 2f times the human daily dose At 63 times the human daily 
dose there was a small but significant reduction in implants and at 125 times the 
human daily dose reduced implants and increased post-implantation losses were 
observed, which were judged to be secondary to maternal toxicity. 
Pregn ancy Category C 

I I I iffnce of animal teratogenicity Reproduclion studies have been 
, 1 111 il doses 63 limes and 125 times the human daily dose and have 

ii I I' I I i-J pup weighl gain and survival when tertenadine was administered 
III mill I pfqmni/ and lactation There are no adequate and well-controlled 
hull III prrqiMnf women SELDANE should be used during pregnancy only if the 
|i itrniiii bPiietil |u tides the potential risk to the fetus. 
Nonleralonenic Effects 

SELDANE IS not recommended for nursing women. The drug has caused decreased 
pup weight gam and survival in rats given doses 63 times and 125 times the human 
daily dose throughout pregnancy and lactation. Effects on pups exposed to SELDANE 
only during lactation are not known, and there are no adequate and well-controlled 



studies II 



:Use 



1 during lactahon 



Safety and effectiveness of SELDANE in pediatric patients below the age of 12 years 
have not been established 
ADVERSE REACTIONS 
Cardiovascular Adverse Events 

Rare reports of severe cardiovascular adverse effects have been received which 
include ventricular tachyarrhythmias (torsades de pointes, ventricular tachycardia, 
ventricular fibrillation, and cardiac arrest), hypotension, palpitations, syncope, and 
dizziness Rare reports of deaths resulting from ventricular tachyarrhythmias have 
been received (see CONTRAINDICATIONS, WARNINGS, and PRECAUTIONS: Drug 
Interactions), Hypotension, palpitations, syncope, and dizziness could reflect 
undetected ventncular arrhythmia, IN SOME PATIENTS, DEATH, CARDIAC ARREST 
OR TORSADES DE POINTES HAVE BEEN PRECEDED BY EPISODES OF SYNCOPE 
(See WARNING BOX) Rare reports of serious cardiovascular adverse events have 
been received, some involving 01 prolongation and torsades de pointes, in apparently 
normal individuals without identifiable risk factors: there is not conclusive evidence of 
a causal relationship of these events with terfenadine Although in rare cases there 
was measurable plasma terfenadine, the implications of this finding with respect to 
the variability of terfenadine metabolism in the normal population cannot be assessed 
wilhoul further study. In controlled clinical trials in otherwise normal patients with 
rhinitis, small increases in QTc interval were observed al doses of 60 mg b,l,d. In 
studies at 300 mg b-i,d, a mean increase in QTc of 10% (range -i'/t to +30%) (mean 
increase of 46 msec) was observed. 
General Adverse Events 

Experience from clinical studies, including both controlled and uncontrolled studies 
involving more than 2,400 patients who received SELDANE, provides information on 
adverse experience incidence for periods of a few days up to six months The usual 
dose in these studies was 60 mg twice daily, but in a small number of patients, the 
dose was as low as 20 mg twice a day, or as high as 600 mg daily 
In controlled clinical studies using the recommended dose of 60 mg b id , the 
incidence of reported adverse effects in patients receiving SELDANE was similar to 
that reported in patients receiving placebo, (See Table below) 



Adverse Events ReponeH in Clinical Trials 


Percent of Patients Reporting 




Controlled Studies' 


All Clinical Studies" 




SELDANE 


Placebo 


Control 


SELDANE 


Placebo 


Adverse Event 


n=781 


n=665 


n=626— 


n=2462 


n=1478 


Central Nervous System 
















8.1 


18,1 


8.5 


8.2 


Headache 




7,4 


3,8 


15.8 


11,2 


Fatigue 




09 


5,8 


4.5 


3,0 


Dizziness 




1,1 


1,0 


1.5 


1,2 


Nervousness 




02 


0.6 


1.7 


10 


Weakness 




0,6 


0.2 


0.6 


05 


Appetite Increase 




0.0 


0.0 


0.5 


00 


Gastrointestinal System 












Gastrointestinal Distress 












(Abdominal distress, 
Nausea, Vomiting, 






















Change in bowel habits) 


4.6 


3,0 


2.7 


7.6 


5,4 


Eye, Ear, Nose, and Throat 












Dry Mouth/Nose/Throat 


2,3 


1,8 


3.5 


4.8 


3,1 


Cough 


0,9 


02 


05 


2.5 


17 


Sore Throat 


0,5 


03 


05 


3.2 


1,6 


Epistaxis 


0,0 


0,8 


0.2 


0.7 


0,4 


Skin 












Eruption (including rash 












and urticaria) or itching 


1.0 


1,7 


1.4 


1.6 


2,0 



■ Duration of treatment in 'CONTROLLED STUDIES' was usually 7-14 days 

■ • Duration of treatment in 'ALL CLINICAL STUDIES' was up to 6 months. 

"• CONTROL DRUGS: Chlorpheniramine (291 patients). d-Chlorpheniramine (189 

patients). Clemastine (146 pabents) 
In addition to the more frequent side effects reported in clinical trials (see Table), 
adverse effects have been reported at a lower incidence in clinical trials and/or sponta- 
neously during marketing of SELDANE that warrant listing as possibly associated with 
drug administration These include: alopecia (hair loss or thinning), anaphylaxis, 
angioedema, bronchospasm, confusion, depression, galactorrhea, insomnia, menstrual 
disoiders (including dysmenorrhea), musculoskeletal symptoms, nightmares, pares- 
thesia, photosensitivity, rapid flare of psoriasis, seizures, sinus tachycardia, sweating, 
thrombocytopenia, tremor, urinary frequency, and visual disturbances. 
In clinical trials, several instances of mild, or in one case, moderate transaminase eleva- 
tions were seen in patients receiving SELDANE, Mild elevations were also seen in 
placebo treated patients. Marketing experiences include isolated reports of jaundice, 
cholestatic hepatitis, and hepatitis. In most cases available information is incomplete, 
OVERDOSAGE 

Information concerning possible overdosage and its treatment appears in the full 
prescribing information 



potential interaction c 



One tablet (60 mg) twice daily for adults and pediatric patients 12 years and older 
USE OF DOSES IN EXCESS OF 60 MG B,I,D IS NOT RECOMMENDED BECAUSE OF 
THE INCREASED POTENTIAL FOR QT INTERVAL PROLONGATION AND ADVERSE 
CARDIAC EVENTS. (See WARNING BOX) USE OF TERFENADINE IN PATIENTS WITH 
SIGNIFICANT HEPATIC DYSFUNCTION AND IN PATIENTS TAKING KETOCONAZOLE, 
ITRACONAZOLE, CLARITHROMYCIN, ERYTHROMYCIN, OR TROLEANDOMYCIN IS 
CONTRAINDICATED, (See CONTRAINDICATIONS, WARNINGS, and PRECAUTIONS: 
Drug Inferachons) 
HOW SUPPLIED 
NOC 0068-0723-6f 

60 mg tablets in bottles of 100 
NOC 0068-0723-65 

60 mg tablets in bottles of 500, 
Tablets are round, white, and debossed "SELDANE" Store tablets at controlled room 
temperature (59-86°F) (15-30°C), Protect from exposure to temperatures above 
f04°F(40°C) and moisture 
Prescribing Information as ol January 1995 
Merrell Dow Pharmaceuticals Inc, 
Subsidiary of Marion Merrell Dow Inc, 
Kansas City, MO 641 14 
U,S, Patent 4,254,129, 
Other patent applications pending, 
selb0f95a 



IT IS OBVIOUS THAT THE NUCLEAR INDUS- 

try has failed and that the time has come 
for a complete energy transition in this 
country. We have the technology and the 
ability to use renewable energy. The 
risks are too great not to change. 

Kathryn Herzog 
Minneapolis, Minnesota 

YOU TOUCHED ON THE ROOT CAUSE OF 

the problem of storing spent fuel rods: 
"The Federal Government has never 
created a storage site for high-level 
radioactive waste." Why not? Who are 
the villains? It is we the people, along 
witli our elected representatives. Several 
sites have been identified as candidates 
for nuclear-waste storage, but the wide- 
spread "not in my backyard" attitude 
has stopped development of the waste- 
storage sites for more than 20 years. 

Stephen A. Hodgson, Engineer 
Galveston, Texas 



Cuban Shoot-Down 

IF UNARMED CUBAN CESSNAS FLEW OVER 

the White House dropping anti- American 
literature [Nation, March 4] and contin- 
ued to violate U.S. airspace despite 
repeated warnings, I would support 
President Clinton's decision to shoot 
them down in the same way Fidel Cas- 
tro okayed firing on the planes of Broth- 
ers to the Rescue. Am I the only Ameri- 
can who opposes communism and 
Castro but believes the embargo only 
hurts the Cuban people? Why not an 
embargo against civil-rights-violating 
communist China? 

Karin Anderson 
Beverly Hills, California 

WE CUBANS KNOW THE PROBLEM OF 

the Cuban people is Castro himself. He is 
the imperialist one. 

Alina Brouwer and Pedro Rivero 
Kingston, Jamaica 

CUBA IS A NATION AS SOVEREIGN AS THIS 

one, even if the politics differ. If Brothers 
to the Rescue wants to be part of Castro's 
demise, it should take action within 
Cuba, instead of tiying to manipulate the 
foreign policy of the U.S. 

Marie Tagenius 
Los Angeles 



Buchanan's Plans 

PAT BUCHANAN'S VIEWS ON ISOLATIONISM 

and economic protectionism [Nation, 
March 4] are out of synch with today's 
global economy. His policies, such as 
scrapping the Nortli American Free Trade 
Agreement, would hurt the constituency 
he claims to represent: the working class. 



Americans are much smarter than 
Buchanan gives tliem credit for, and they 
will expose tliis man for what ho realK' is, 
a pandering opportunist. 

Maurice Basldivhc 
Moncton. Neiv Iviinsivirk 

BUCHANAN'S PL.\N IS TWOFOLD. FIRST, 

trade with other countries would be 
dependent on dieir allowing us the same 
access to Uieir markets that we give them 
to ours. Second, Buchanan sends a mes- 
sage to those corporate entities that 
would take their manufacturing activi- 
ties south into the world of $2-an-hour 
labor. His message: if you go south, find 
a new market for your goods. Neither of 
tliose ideas conjures up visions of a wall 
around the U.S., except to those who are 
taking advantage of the lack of protec- 
tion our businesses have or those who 
would desert their employees to main- 
tain the key to the executive washroom. 
John L. Brown 
Hollister, Missouri 

THOUGH I FIND BUCHANAN MONSTROUS, 

what is even more frightening is the ele- 
ment that has given him these primary 
victories. Deliver us from this evil! 

Samuel B. Sutton 
New York City 



Good Pat, Bad Pat? 

Our story "The Case 
Against Buchanan" 
[Nation, March 4] 
prompted a few 
readers to come up 
with some historical 
notes. Rodrigo F. 
Sanchez, 13, of Menomonee Falls, 
Wisconsin, went so far as to liken 
the Republican presidential candi- 
date to Robespierre, the French 
revolutionary leader who conducted 
the Reign of Terror. "Buchanan's 
waging popular hell on Washington 
and the executives of corporate 
America," wrote Sanchez, "reminds 
me of Robespierre's endless 
rhetoric against the bourgeoisie 
who preyed upon France's 
greatness." Sanchez noted, howev- 
er, that "when Robespierre went 
beyond the boundaries, the French 
people turned against him." Robert 
de Castro of Bridgewater, New Jer- 
sey, was concerned that Buchanan's 
ideas would head the U.S. into 
history in the wrong sense. "While 
the rest of the world prepares for 
the 21st century," commented De 
Castro, "Buchanan would have us 
get ready for the 19th." 




Rategate 

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THIS MAN EFFECTIVELY ARTICULATES THE 

case against a corporate agenda that 
treats employees like unwanted chattel. 
Buchanan has struck a chord. May it 
soon become a chorus! 

David Greene 
Hamilton, Ontario 



The Values Candidate 

AS THE TWO LEADING REPUBLICAN PRESI- 

dential contenders [Nation, March 4] 
battled in our state, citizens tuned out 
the talk and watched the walk. On the 
same day that Bob Dole met homeless 
families at a church-run program, 
Buchanan traveled to Mount Rushmore 
to declare that he was checking to see if 
there was space for his likeness on the 
mountain. Who is the values candidate? 
Larry Brendtro 
Lennox, South Dakota 

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HEWLETT^ 
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NOTEBOOK 




iiEvil visited us yesterday, 
and we don't know why.f T 

—Rati Taylor, headmaster 

of the school in Scotland 

where a gunman slaughtered 

16 children and their teacher 

UVm a Muslim first and a 
Muslim last. My duty is to my 
creator, not to nationalistic 
ideology.Tf 

—MahmoudAbdul-Raufofthe 
Denver Nuggets on not stand- 
ing for the natioruil anthem 

iiWe have become in the 
eyes of the Palestinian 
masses an ugly copy of the 
Israeli occupation, and it 
won't be long before we see 
one Palestinian shooting at 
another Palestinian in a 
police or military uniform. T? 
—A senior security officer 
in Yasser Arafat's 
Palestinian Authority 

iiW it helps to make people 
think a little bit more what 
those ideals are, then I'll 
keep wearing this uniform. T? 

—Ousted Trekkie-garbed 

alternate Whitewater juror 

Barbara Adams on the star ship 

virtues of peace and inclu^on 





Winners & Losers 



ANTHEM ANTICS 



HAKEEM OLAJUWON 

Houston's star immigrant is cast as the "good 
Muslim" to Abdul-Raufs "bad IVIuslim" 

BASEBALL 

America's favorite pastime has long had a 
quiet answer: stay in the dugout till it's over 

ROSEANNE 

Now her shrieking rendition of the anthem at 
that Padres game doesn't seem quite so bad 



MAHMOUD ABDUL-RAUF 

He finally compromises with the N.B.A., but 
forget a Wheaties box — and the Dream Team 

BASKETBALL 

Taking away a man's living just for refusing to 
slouch and scratch himself like everyone else? 

THE STAR-SPANGLED BANNER 

All this might have been avoided if only it were 
a singable tune — o\ America the Beautiful 




TIME, MARCH 25, 



NOTEBOOK 




Bill's Nemesis: Nader? 

IF YOU THINK BILL CLINTON'S ONLY 

obstacle to re-election is Bob Dole, 
think again. Judging by the volume 
of back-channel contacts, some 
Democrats are more concerned 
about, of all people, Ralph Nader. 
The sometimes loopily ascetic 
consumer crusader, who plans to 
run for the presidency as the candi- 
date of the Green Party, told Time 
he has been ap- 
proached by sever- 
al worried Demo- 
§ In/WlSr^iL cratic bigwigs, 

including members 
of Congress and 
their staff mem- 
bers. Reason: the 
latest Field Poll in California shows 
Nader drawing 6% of the vote, 
which in a tight race might deprive 
Chnton of a victory in that must- 
win state. Says Bill Press, the state's 
former Democratic Party chair- 
man: "Historically, elections are 
won in California by three to five 
percentage points, so [Nader] could 
be the margin of difference. A vote 
for Nader is a vote for Bob Dole." 

Nader laughs at the notion that 
he might bow out to help Clinton. 
He considers Clinton pro-corporate 
America, anti-consumer protection 
and as averse to campaign-finance 
reform as any Republican. Besides, 
Nader adds, "it's hard to be a spoil- 
er in a system that is spoiled to its 
core." He's already in next week's 
California primary. 

The White House is taking 
Nader seriously, even though he 
has not formally said he will run 
in November. When Jesse Jack- 
son decided not to challenge 
Clinton in the primaries, most 
Clinton advisers thought they 
could move the President to the 
right with impunity. No longer. 
Says White House counselor Bill 
Curry: the Nader candidacy "is a 
bad thing." 

Nader is more interested in 
spreading his message than win- 
ning. He is raising no money and 
intends to spend less than $5,000 
from his own pocket, foreseeing a 
campaign of video- and audio- 
cassettes. Still, Republicans are ex- 
cited aboui his prospects. Says 
G.O.P. pollst.n- Bill Mclnturff: "The 
Greens are n / favorite little splin- 
ter party." — £V Jeffrey H. Birnbaum 




WASHINGTON DIARY 

Margaret Carlson 



Household Finance 

Whitewater will never be a mini-series— too much trailer park, too few Gulf- 
streams jetting to private islands, amounts in the low-six rather than high-sev- 
en figures, and a low quotient of hunks. That may explain why Democrats, who 
last May joined a 96-3 vote authorizing the ethically challenged Senator Alfonse 
D'Amato to chair the Whitewater Committee, now are holding firm against an 
open extension of the hearings. After eight months there's no smoking gun, no 
smoking anything, just a simmering stew of subdivided Ozark property vWth- 
out sewer lines and endless minutiae about closing costs and mortgage points. 
No one knows the protagonists— imagine trying to cast the pudgy David Hale, 
a confessed felon and owner of a failed burial insurance company. The best vi- 
sual from the first Whitewater trial is already gone: the Trekkie alternate juror 
in Vulcan regalia. The wonder is that she was beamed up at all. 

Meryl Streep would make a good Hillary— excellent at 
dramatizing pain in a marriage— but surely she would choke 
on this line from James B. Stewart's Blood Sport: "You can't be 
a woman if you don't have children. It's the central mission of 
women," which Hillary wouldn't utter at her most wonkish. In 
the end, it's not suiprising that Hillary, rather than the Gover- 
nor, may have been more involved in Whitewater. Political 
wives are often left to build a nest egg while their husbands are Hillary Streep r 
building empires— see Marianne Gingrich (who has taken heat for career leap- S 
ing horn beauty consultant to representative of the Israel Export Development ° 
Company) and Honey Alexander (a deal cutter so successful she could do in- S 
fomercials on how to turn $5,000 into $142,000). While the men grapple with 
macro-finances of the M-1 variety, it falls to their wives to micro-manage 
tuitions, mortgages and iRAs. Even the aggressively un-Hillary Elizabeth Dole 
has made— and invested— much of the Dole money. 

The wild success of the No. 3 TV show, Friends, is more un- 
derstandable in light of last week's Census Bureau report, 
which shows that the average age at which people wed has 
cHmbed to a record level— 26.7 for men and 24.5 for women. 
Never-married adults now make up a quarter of the over-18 
population. That's 44.2 million people with enough free time 
to drink double their weight in coffee daily, get precision hair- 
cuts that fall rakishly into the eyes without totally obstructing Unwed Friend 
vision, and watch a show on which people do all of the above. When they do fi- 
nally wed maybe the Starbucks generation wiU cause less pain in their marriages 
than the yuppies did. 



Hang a lamb chop in the window and they will come used to 
be the reigning social doctrine in Washington. But now that 
the new ethics rules require Senators and Representatives to 
pay their own way, they stayed away in droves from Placido 
Domingo's gala, which raised $2.6 million for the Washing- 
ton Opera last Sunday. Colin Powell and Ross Perot bought 
the $1,250 tickets, but tliey aren't used to having someone else 
pick up the tab— yet. 



Hillary dropped by James Carville's book party Thursday night at The 
Palm, and explained her reason for the surprise visit in a thick Arkansas ac- 
cent: "I'm a pushover for sweet-talking Southern boys. I know where they're 
coming from, but I still fall for it." Maybe a mini-series after all. Streep does 
wonderful accents. ■ 





time, march 25, 1996 




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Drive safely. VOU^-VO 



NOTEBOOK 



Iran: Maybe We Didn't Mean It 

When Iran's official news agency described the suicide 
bombings in Israel as "divine retribution," the Tehran 
government, in its current attempt at moderation, v^^ent 
through public hoops to disavow the sentiments and to 
regret the loss of life. All of which makes a recent round 
of Iranian diplomacy more than a little embarrassing. 
Just before the murderous last spate of bombings in Is- 
rael, Hasan Habibi, Vice President of Iran, visited Syria 
for what amounted to a pep rally for Middle East terror- 
ism. Gathered at Iran's embassy in Damascus were the 
leaders of such Palestinian extremist groups as Hizbal- 
lah, Islamic Jihad, the Popular Front for the Liberation 
of Palestine-General Command and Hamas. 

Habibi congratulated the Hamas representatives on 
the previous bombings in Israel and urged them to keep 
up the attacks. Habibi promised more financial aid and ex- 
tra training at bases in Lebanon supported by the Iranian 
Revolutionary Guard. Tehran said it would also press 
Damascus to let Hamas fighters continue to operate in 
Syria and in Syrian-controlled sectors of Lebanon. After 
the latest attacks, will all these be empty promises? 




The Price of a Photo-Op 



So what did Bill Clinton have to endure for his photographic 
coup of getting 29 world leaders to stand shoulder-to-shoulder 
against terrorism? Opening statements, lots of opening state- 
ments—as in 250 minutes of self-congratulatory remarks from 
all the global egos present. They went on so long that Clinton, 
having flown overnight aboard Air Force One with a ram- 
bunctious King Hussein of Jordan as a roommate, periodically 
verged on nodding off. In fact, the hour allotted for the actual 
meeting of the leaders had to be cut back to 20 minutes be- 
cause of the remarks. In any case, negotiations weren't the 
reason for the summit in the first place. A picture is worth at 
least $100 million, the amount Clinton pledged to Israel the 
next day toward an antiterror campaign. 





THE GOOD NEWS 


HEALTH 


THE BAD NEWS 

• Is chicken really foul? A consumer group 
charges that 25% of raw chickens harbor Salmo- 
nella and 90% are contaminated with Campylo- 
bacter, an equally stomach-sickening and poten- 
tially deadly bacterium. The study blames the 
practice of immersing carcasses in hot water to 
loosen feathers; the report, disputed by the poul- 
try industry, says the water is not hot enough to 
kill the bacteria and encourages them to spread. 


• Look, Ma— no cavities in more than 50% of to- 
day's school-age children, compared v^dth 25% of 
kids in the early '70s. fluoridated water and bet- 
ter dental care are reasons why. 


pr 


• A new form of the blood-thinning drug he- 


parin may enable patients with potentially dan- 
gerous BLOOD CLOTS to be treated at home, two 
studies find. Traditional heparin must be admin- 


REPORT 


istered intravenously at a hospital. 






..,r.^^„ Ur,.A^nc fr^„Ul^ ^^^r.^.^^ „«..^,>e ^^r^ci^^r 


• To be screened for heart disease, people are sub 
an exercise stress test or injected with radioactive 
before undergoing an X-ray. Now research show 
ultrafast cat-scan can do the job just as weU. The sc 
speedy "stop motion" pictures of the heart that spot 
artery-clogging deposits. 

Sources— GOOD NEWS: American Dental Association; New Eniland Journal of Medicine; emulation BA 


iected to this: a study suggests that the metabolic rate of overweight 
thalhum black women at rest is about 5% slower than for whites. 


an takes • Thunderstorms, say scientists, can trigger asthma at- 

:oronary tacks— even in people who have never had one. Water and 

wind gusts release asthma-triggering particles from pollen. 

NEWS: Center for Science in the Public Interest; Fourth International Congress of Behavioral Medicine, British Medical Journal 



TIME, MARCH 25, 1996 




I 



DOES SHE DO DIAPERS? 

i^Can you imagine me 
with a woman old enough 
to be my wife?... My girl- 
friend is 25 years old — 

perfect. 7 7— HOLLYWOOD VETERAN 
TONY CURTIS, 70, IN GQ MAGAZINE 

LOCAL HEROES 




TONY BROWN, 18, BROWNING, 
MONT.; high school wrestler 
Brown survived a horrific train acci- 
dent last April that resulted in the 
amputation of both legs below the 
knee. But after intensive rehab, 
the high school wrestler refused to 
give up his sport. By adjusting his 
skills and maneuvers, he continued 
to compete — without the use of his 
prostheses. At a state meet last 
month, he placed sixth out of 16 
finalists at 105 lbs. His coach, Steve 
Komac, calls him "one of the most 
courageous people I've ever met." 




DAN LAWRENCE, 45, HUMBOLDT 
COUNTY, CALIF.; radio DJ 
After two tours of duty in Vietnam, 
Lawrence developed cancer, which 
doctors believe was caused by 
Agent Orange. His vocal cords were 
removed as part of treatment, and 
he talks via a laptop computer and 
voice synthesizer. Still, since Feb- 
ruary, he has been host of D/gifa/ 
flflus/c Zone on khum-fm, which 
features tunes from the Vietnam 
War era. Facing more surgery, he 
nevertheless urges listeners to 
"jump into the river of life." 





CALVIN TRILLIN 



All the Lovely Pigeons 

■ SUPPOSE IT'S STILL FAINTLY POSSIBLE THAT THOSE WHO ENGINEERED THE 
mysterious snatching of 4,000 pigeons from Trafalgar Square had only the 
best interests of the pigeons at heart. There is that ray of hope to clmg to. 

I can imagine many people in England trying to reassure one another with 
such thoughts as they read increasingly grim speculation about the pigeons 
in the morning papers. "Don't look so glum, AJfie," Alfie's wife says, as she 
puts the eggs and grilled tomato and thick-cut bacon in front of him. "Maybe 
this was some nice gentleman who has a home for older pigeons in a lovely 
part of Sussex where they don't have to be around those nasty foreigners." 

It may be, of course, that Alfie was looking glum because, 
breakfast traditionally being the only edible meal in England, 
he knew his day had already peaked well before 9 in the 
morning. But he was probably thinking of those pigeons. The 
English are known for having almost unlimited sympathy for 
animals that are unromantic or even animals that Americans 
might describe as having been hit upside the head with an 
ugly stick. The United Kingdom is a country in which the 
monarch harbors corgis. 

A corgi looks as if it were put together with the unrelated 
body parts of three or four other breeds— the parts, as it hap- 
pens, that each breed most longed to get rid of when it looked 
in the mirror eveiy morning. ("If I could just get some other 
dog to take this little sausage of a torso, I could go places on 
these legs.") 

Apparently, there was at first hope that the pigeons had 
been taken by some poor lad who desperately wanted 
to race pigeons but lacked the wherewithal to buy 
his own flock. Alfie was able to imagine the 
Trafalgar Square pigeons soaring gracefully over 
the Somerset moors or being pampered by a 
kindly pigeon fancier like that nice detective on 
mTD Blue. 

But I heard on the radio that the pigeon- 
racing authorities dismissed that theory, explaining that Trafalgai Square 
pigeons are too old and out of shape to be competitive racers. 

"I was thinking they might have special races for older birds," Alfie may 
have said when that news came out. "Like the over-50 division in tennis." 

I have to say that I was pessimistic from the start. Any sensible analysis 
of the case has to start with a brutal but undeniable fact: people eat pigeons. 

When the New American Cuisine began to take hold in Northern Cah- 
fornia, I remember beginning each visit to San Francisco by checking to 
make certain there were still pigeons in the parks. My fear was that between 
my trips to the city, afl the poor birds might have been snatched up, smoked 
and sewed on a bed of radicchio. 

I don't think the Trafalgar Square caper indicates that smoked pigeon on 
radicchio has replaced bangers and mash in the hearts of the English. The 
pigeons could be sei-ved as anything. As Escoffier, or one of them, may have 
said, "Chopping up is the great leveler." 

In fact, a young man, who told The Sun that he had taken 1,500 of the 
pigeons and sold them to a middleman, said, "As far as I know, they go to 
cuny houses all over Britain." 

We all hope he's wrong. People who would snatch Trafalgar Square 
pigeons for restaurant stewpots would snatch almost any animal, no matter 
how repulsive— although the Queen will be relieved to hear they'd probably 
draw the line at corgis. ■ 




20 



TIME, MARCH 25, 1996 




I only ask lv\'o ihing.s when I fly. IIow mLicln lime can 
I sa\L\-' And how coniloi lalile can I be? 

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And they give business flyers like me more space. 
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really helps, sleeping-wise. More than adecjuate for someone 
my size, and I'm six three. 



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My business philosophy is no big secret, 'tou have to stay 
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And time-travel-saving several hours or even half a day- 
is a big one. 



-1^ 




ikuk. Thailand 



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NOT K 13 () O K 



MILESTONES 




KIESLOWSKI IN 1992 



EDWARDS IN 1962 



HUNTER IN 1960 



SENTENCED. JAMES WATT, 58, Reagan- 
era Secretary of the Interior; to com- 
munity service and a $5,000 fine; af- 
ter pleading guilty to attempting to 
influence a grand jury looking into his 
lobbying activities; in Washington. 

DIED. KRZYSZTOF KIESLOWSKI, 54, 

master Polish filmmaker; after heart- 
bypass surgery; in Warsaw. An Oscar 
nominee last year for Red, he made 
daunting, haunting studies of passion 
and alienation on the grand scale, as 
in his 10-hour Decalogue, which dra- 
matizes the Ten Commandments in a 
Warsaw high-rise, and his Three Col- 
ors trilogy (Blue, White, Red), in 
which troubled souls in France, 
Poland and Switzerland come to 
terms with a dark obsession. In 1994 
Kieslowski said he was quitting films; 
he just wanted "to sit alone in a room 
and smoke." He left behind some of 
the most elegant and intelligent films 
of the past decade. 

DIED. VINCE EDWARDS, 67, actor; of 
pancreatic cancer; in Los Angeles. As 



Dr. Ben Casey, he was surly, sarcastic, 
short-tempered— and that's just how 
he treated his friends. Yet TV viewers 
in the 1960s couldn't get enough of 
the neurosurgeon or of Edwards, who 
portrayed the combative Casey as the 
polar opposite of his ratings rival, the 
saintly Doctor Kildare (played by 
Richard Chamberlain). Prior to Ben 
Casey, Edwards was a B-movie gang- 
ster. After, he appeared in forgettable 
film and TV work, including the in- 
evitable Return of Ben Casey in 1988. 

DIED. ROSS HUNTER, 74, producer; of 
lymphoma; in Los Angeles. Hunter's 
movies were rarely mistaken for art— 
or for anyone else's work. From 
weepers (1954's Magnificent Obses- 
sion) to musicals (Thoroughly Modern 
Millie in 1967) to comedies (a brace of 
Doris Day films) to dramas (1970's 
Airport), the typical Hunter product 
offered a high-calorie menu of top- 
priced Hollywood stars, expensive 
sets and sumptuous costuming that 
gave tragedy and melodrama a gloss 
of glamour. 



20 YEARS 
AGO IN TIME 

Watergate, the Movie 

When Robert Redford bought 
the screen rights to All the 
President's Men, he had little 
idea of the snags that lay in 
store. One was his hiring of 
Butch Cassidy and the Sun- 
dance Kid scriptwriter Wil- 
liam Goldman, who put empha- 
sis on off-color newsroom 
humor. The move caused an up- 
roar: "The Post nearly backed 
out of the project then, and 
[Executive Editor Benjamin 
C] Bradlee was blunt with 
Redford. 'Just remember, 
pal,' he said, 'that you go off 
and ride a horse or jump in 
the sack with some good- 
looking woman in your next 
film — but I am forever an 
asshole.' Redford was im- 
pressed: 'I've met few people 
who were as conscious of 
their position — and how to 
keep It.' " —March 29, 1976 

Cover: Dustin 

Hoffman 

and Robert 

Redford 

as the 

Washington 

Post 

reporters 

who land the 

story of the 

century 





WHERE ARE T 



SOONG MEI-LING, 97; MANHATTAN 
Former First Lady of China 
The widow of Generalissimo Chiang Kai- 
shek, Madame Chiang— as she came to be 
known — ^was the most charming and per- 
suasive of China's notoriously influential 
Soong family. As her husband's emissary, 
she pleaded for the Allies to support China in its war against 
Japan, taking Washington by storm in 1943 when she ad- 
dressed a joint session of Congress. Defeated by the commu- 



nists in 1949, the Chiangs fled to Taiwan, where he ruled until 
his death in 1975. Estranged from his successor, her stepson, 
she divided her time between Taiwan and the U.S. Now settled 
in New York City, she leads a quiet life of Methodist prayer, vis- 
iting old friends and avoiding politics. Still, appearing last week 
at a controversial exhibition of treasures her husband took 
from the mainland, she couldn't resist a veiled reference to the 
current Taiwan crisis. Says Metropolitan Museum of Art direc- 
tor Philippe de Montebello: "She spoke with majesty of the en- 
during and unifying quality of art in times of political turmoil." 



g.iiiujiJ>^iiyi>j,MiMJJiiJjjJAiiJJM,iffi.',i!mgH;»iffliBffl!iPffii,imfim 



Michael Quinn, Jeffery C. Rubin and Douglas Wall 



TIME, MARCH 25, 1996 



23 




Wl 



'licii vcni 1)11,1 I [ 
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niii^ht <is well take the opportunity to see 
all ol It Thats what we've been dotns; tor 
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tliMiii taking on everv form ot unbridled 
tortuie imaginable Sold in over 1(H) coun- 
tries, Land Rox'crs now roam the world bv 
the thousands So call l-8()()-Fl\I-: 4\\1) 
and see where our obsessi\'c commitment 
to the master,' ot 4x4 eni^ineering gets vou 
Because as it turns out, it's gotten us pre- 
cisely where we want to be everywhere. 




f^ 



DEFENDER 90 

The Defender, a direct descendant of 
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is luimitigated muscle. It's ruggedly 
designed, incredibly capable, and 
considered by many the foremost off- 
road vehicle in the world. 



DISCOVERY 

Along with all the toughness you'd 
expect from a Land Rover, the 
Discovery is decidedly civilized. It's 
perfect for the challenges of every- 
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: drive has gotten us nowhere. 




RANGE ROVER 

The Range Rover is undoubtedly the 
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has no equal. 




M A T I O N 



BOB & BILL'S BB 

How do you cook up laws and roast each other at the same time? Dole and Cli 



By RICHARD STENGEL 



BIOLOGISTS CALL IT SYMBIOSIS: 
the living together in more or 
less intimate association of 
different, sometimes hostile 
species in which each exploits 
the other to its own maximum 
advantage. In rare cases, such 
as parasitic wasps, creatures 
use each otlier for survival before one de- 
stroys the other. This is not unlike the 
current political morphology involv- 
ing the genus Presidentum Candi- 
datus, witli those two familiar 
species, Robert Dole, Republican 
challenger, and BiU Clinton, 
Democratic incumbent. 

Washington, as any 
biologist will tell you, is 
cmeler than nature, and 
for the next few months ri- 
vals Clinton and Dole will 



find themselves in more or less intimate as- 
sociation, mutually dependent but whole- 
heartedly trying to annihilate each other. 

For the next few months, the presiden- 
tial campaign has shifted from the green 
fields of the Republic to the hard pavement 
of Pennsylvania Avenue. Forbes has folded, 
and Pat Buchanan remains on the hustings, 
a distant and noisy drummer. The scenario 
presents a curious and unique sit- 
uation in American his- 
tory, a Senate ma- 




26 




* J / 



jority leader and a President, opposing can- 
didates in a general election, who must 
work out some modus operandi while try- 
ing to knife each other in the back. (The 
only sitting Republican Senator— not even a 
majority leader— elected President in this 
centuiy was Warren Harding. His slogan: 
"Return to Normalcy.") For the next few 
months, voters will be able to observe a 
complex, multilevel game in which Dole 
<md ("linton will be constantly analyzing 
\v hois hurt or helped by different legislative 
strategies. At this point, neither knows what 
the other is going to do. "I get mixed sig- 
nals." says Dole. "Some say he really wants 
to get things done. Others say he could 
caie less." Clinton's camp is waiting for 
Dole to make the first move. 

When Bob Dole decided to run for 
['resident, a small voice inside him, 
the voice of the Depression kid from 
hardscrabble Russell, Kansas, said, 
"Bob, don't quit your day job." 
And he didn't. Flying back to 
Washington last week on his 
campaign plane after wrapping 
up the nomination fight. Dole 
confided that he was "anxious to 
get back to work." Back to work? 
In other words. Dole was done ^ 
moonlighting as a Repub- 
lican primaiy candidate 
and now wanted to re- 
turn to his real 
work, the job 

he knows and 
loves and does bet- 
ter than anyone else. 
Last week, sitting in 
what is probably his favorite 
spot in the world— the narrow 
balcony between his office and 
e Senate floor, a place where no 
voters can pester him, where no one 
can ask him why he lacks vision— Dole 
turned his peipetually tanned face to the^ 
late winter sun and did what comes natu-^ 
rally: he talked shop. From his lap heg 
plucked a neatly folded piece of paper and ^ 
ticked off a list of bills. Farm bill. "Have to 3 
do that." Line-item veto. "That's some-n 
thing they [the Democrats] want." Small- m 




J-—- -— 



rWAY BAKE-OFF 

311 are about to show what happens when the campaign comes to Washington 




.r^ 



business regulatoiy reform. "That's bipar- 
tisan. That will pass, probably 90 to 6." 
And on and on down the list: health 
care insurance, term limits, campaign 
finance reform and a balanced bud- 
get. Pure Dole, so comfortable with ' 
legislative jargon, so uncomfortable 
with campaign rhetoric: '"When we 
leave here for the convention, if we've 
got a pretty good list of things we've 
passed, the President can veto them but 
we can make our case." You want vision? 
Bob Dole has found his vision: a legislative 
to do list. No one can check off items 
like Dole. Remember George Bush, 
~s, also vision challenged, who said, 
ip "Message: I care." Dole's ver- 
W sion: "Message: I do." 
^ Dole knows he's a better 

/ legislator than campaigner, so 
his strategy is to campaign by leg- 
islating. His frequent refrain— "I'm 
a doer, not a talker"— can be demon- 
strated only by actually passing leg- 
islation. Unlike Newt Gingrich, who 
plots grand, overarching designs, Dole 
takes things as they come up, picking allies 
and sizing up enemies as necessary. It's as 
though he thinks it's bad luck to plan ahead. 
The Dole strategy is to depict himself as the 
driving force of change while portraying 
Clinton as the defender of the status quo: 
Senator Change vs. President Veto. Don 
Sipple, Dole's top strategist, sums it up this 
way: "We've got an agenda for change. The 
only question is whether Clinton gets on 
board or stands in the way." 

But Dole's path is a dangerous one 
In his perfect legislative world, hi 
could calibrate bills so cleverly, pack 
them so guilefully, that he would look 
good if Clinton signed and Clinton 
would look bad if he didn't. (Imagine 
Bill's Dilemma: Will it hurt me with my lib- 
eral base if I sign it? Will it poison me with 
Perot voters if I don't?) But Dole's woild is 
changed now. He must reckon with a pos- 
sibly uncooperative House, led by fractious 
freshmen who suspect Dole of selling out 
and last week pleaded with Dick Armey to 
be their champion. He must deal with the 
Senate minority leader, Tom 




TIME, MARCH 25, 1996 



N A T I O N 




WINNER TAKES ALL: Dole celebrates his Super Tuesday victory with his daughter Robin, his wife Elizabeth and a delighted Newt Gingrich 

with children. Veto. We sent him welfare 



Daschle, and the filibustering Democrats 
doing their damnedest to obstruct and wa- 
ter down any legislation. 

Then there's the larger question. In a 
time when many voters love to hate Wash- 
ington, do you benefit ft-om showing your 
skills as Beltway Bob? Dole has to won- 
der: Will cooperating with 
Cfinton make me look 
weak, like a junior Presi- 
dent? And just how do you 
make a complex legislative 
agenda sound like a coher- 
ent message? Especially 
when the candidate is 
more comfortable talking 
about continuing resolu- 
tions and getting a bill out 
of committee than paint- 
ing a glowing picture of a 
rising America. The prob- 
lem for Dole is that passing 
legislation during a presidential campaign is 
not about the fine print— it's about winning 
the battle of perception. 

Dole's strategy has another potential 
flaw. On the campaign trail. Dole has been 
scoring points with lines like this: "We sent 
the President a balanced budget. He ve- 
toed it. We sent him tax cuts for families 



In the current 
firmament, Dole 
proposes, Clinton 
disposes. And in 
so doing, Dole 
could even keep 
Clinton consistent 



reform. Veto." But what happens to the 
Dole strategy when Clinton starts signing 
on the dotted line? A Dole campaign aide 
inadvertently points this out while trying to 
prop up his candidate. "[Dole] complains 
that Clinton is against welfare reform and 
against a balanced bud- 
get," says the aide. "If we 
had deals on each of 
those issues, he wouldn't 
be saying that." But Dole 
is counting on the desire 
of moderate lawmakers 
to get something done in 
an election year, and the 
goodwill of voters who 
will see that Dole is try- 
ing to do just that. The 
path is tricky, but consid- 
er the alternative: cam- 
paigning. "We don't have 
any money," laments a Dole aide. 

History shows that the White House 
has natural advantages. Take this past 
week. The President was making peace 
and photo ops in a Middle East desert, 
while the nominee was specifying how to 
ease the Social Security earnings test. The 
beauty of incumbency is that the President 



can sit back and wait. In the current polit- 
ical firmament. Dole proposes, Clinton dis- 
poses. And in so doing. Dole could even 
force Cfinton to show something fike con- 
sistency. The President the Dole campaign 
accuses of "talking right and governing 
left" could become the President who real- 
ly does, finally, end welfare as we know it. 
The President also has the luxury of de- 
picting himself as a man of accomplish- 
ment if he signs a bill and as a fighter 
against extremism if he vetoes it. 

Clinton aides believe that the Presi- 
dent ultimately wins in the public mind if 
the government appears to be functioning. 
Signing will be his strategy, starting with a 
welfare-reform biU close to the version be- 
ing proposed by a seven-member execu- 
tive committee of the National Governors' 
Association. Clinton's veto of the Republi- 
can bill he once described as draconian has 
yielded changes in his favor. The Gover- 
nors provided $4 billion more in child-care 
funding than the congressional conference 
report recommended. 

The same strategy goes for the line- 
item veto. So what if it was part of the Con- 
tract with America? Clinton wants it. The 
Republicans can moan when he uses it and 
moan when he doesn't. At best, Clinton 



28 



TIME, MARCH 25, 1996 



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will have it for one appropriations cycle be- 
fore the election, and he can use it to reject 
programs he will describe as extremist. 

As President, Clinton also has the ad- 
vantage of being able to step away from any 
imbroglios and take his show on the road, 
where he still has $26 million to spend. 
While Dole is dealing with the nitt)'-gritt> of 
getting bills to the floor, Clinton can float 
above it by making crowd-pleasing speech- 
es about "values" like protecting the 
environment, discouraging smoking, insti- 
tuting the V chip and wearing school uni- 
forms. Like Ronald Reagan in 1984, he can 
even campaign against Washington. ,\1- 
ready Clinton is airing ads in which he talks 
about the need "to cherish our children and 
strengthen America's families." Can't argue 
with that. And talk about Alice in Wonder- 
land logic and appropriating Republican 
themes: the Democratic National Conmiit- 
tee is running an ad about welfare that 
might have been written by Reagan, "i^'am- 
ilies destroyed. Children's dreams lost," 
says the narrator. "No work, no 
welfare— rescue children from the 
destructive welfare system." Bob 
Dole, phone home. 

As the early Clinton ads sug- 
gest, Clinton is already where 
Dole needs to be. It was Nixon's 
commonplace advice to run to the 
right in the primaries, then back to 
the left in the general election. But 
Clinton is already staking his claim 
to that voter-rich region, and to 
the issues that were once the do- 
main of Republicans. This week 
the man who proclaimed in the 
State of the Union address that 
"the era of Big Government is 
over" will release his 1997 budget and call 
for a balanced budget, which has basically 
been Dole's main theme on the trail. 
"Dole's big problem," says Republican 
strategist Ed Rollins, "is that the only is- 
sues he owns are ones that are not attrac- 
tive for a fall campaign: abortion and 
deficit reduction." 

Republicans on the Hill see the writing 
on the wall. They are no longer talking 
about tying the debt limit to pet causes. 
They don't want another train wreck. And 
despite all the odds, voters may be sur- 
prised to see that legislation gets passed 
and signed during this symbiotic presiden- 
tial season. "I think it helps us both," says 
Dole, hopefully. Perhaps voters will decide 
Washington isn't such a terrible place after 
all. In the end they might just opt for the 
Pennsylvania Avenue Dream Ticket: Clin- 
ton-Dole. With Dole doing, Clinton signing 
and both of them taking credit, why make 
a change at all? —Reported by Michael Duffy, 
J.F.O. McAllister and Karen Tumulty/Washington 



LEADER OF THE BLOCK PARTY 

A: 



S THE PRESIDENTIAL-CAMPAIGN BATTLEGROUND SHIFTS TO WASHINGTON, 

Tom Daschle seems an odd candidate for the role he is about to play as Pres- 
ident Clinton's first line of defense on Capitol Hill. A shght and boyish- 
llooking man of 48, he had never managed a major bill before becoming 
Senate Democratic leader last year. Almost incapable of eye-to-eye engagement 
with the television camera, he prefers to read his speeches, softly and deliber- 
atel\-, from behind a pair of glasses. "He looks hke a choirboy," sighs veteran 
South (Carolina Democrat Fritz Hollings, a fire breather. 

But to the surprise of his allies and his foes, the South Dakota Democrat has 
proved remarkably skillful at marshaling his outnumbered Senate forces into an 
almost insurmountable obstacle to the G.o.p. agenda. One by one, they have 
buried almost every item in the Contract with America. And where the G.O.P. 
has managed to get critical bills passed in the Senate— on welfare reform, for in- 
stance—the Democrats have generally reshaped them, sanding off enough of the 
ideological edges to sour the victory for many Republicans. 

In his early, often rocky months as minority leader, Daschle's most delicate 
task was to distance Senate Democrats from Clinton and what the Senator's own 
advisers called an "aura of failure surrounding the Democratic Party." Now 
he faces an almost opposite challenge. "I have to be certain that the Senate 
floor doesn't become the presidential- 
5^ campaign megaphone for Bob Dole, 
and to a certain extent, we can do that 
h by keeping the Republican majority in 
j^ ',; check," Daschle says. "I also have to be 
^w S sure that any legislation out of the Sen- 
ate has as much a Democratic stamp as 
a Republican one, so the President can 
claim as much credit as Bob Dole." 

So far it seems to be working. Last 
week, under pressure from Daschle's 
troops. Senate Republicans dismayed 
their counterparts in the House when 
they added $2.7 billion for education 
demanded by Clinton to a spending bill 
that would keep the government oper- 
ating for the rest of the year. In scoring 
these victories, Daschle has a time- 
honored weapon at his disposal, one that Dole put to good use in the past— the fil- 
ibuster. With enough party discipline, it makes the minority leader unstoppable. 
Whereas House Democrats have regularly fractured. Senate Democrats have yet 
to lose the seven defectors it would take to break a Daschle-backed filibuster. 

When Daschle was elected to the job by a one-vote margin 15 months ago, 
virtually eveiy Senate Democrat of stature lined up against him. The barons who 
lost their chairmanships in the wake of the 1994 Democratic rout quietly re- 
cruited Connecticut's Chris Dodd to run against him, arguing that someone with 
Daschle's inexperience would be no match for Gingrich's gale-force approach to 
legislating or Dole's awesome mastery of the game. 

But amid the towering egos of the Senate, what works for Daschle is some- 
thing entirely different: he has inexhaustible patience for finding a consensus. 
"He gets eveiybody; he doesn't lose anybody," says West Virginia's Jay Rocke- 
feller. "That's easier when you're in the minority, but for Democrats, it's never 
easy." Daschle's colleagues still question whether the quiet tenacity that has 
served him so well as an obstructionist will become a liability if the Democrats 
regain control of the Senate and are once again called upon to set the agenda, 
rather than thwart it. For now, though, even the Republicans acknowledge 
Daschle's effectiveness, at least in a backhanded way. "They made us jump a lot 
of hoops," says Dole. But then Dole knows better than anyone else the value of 
that tactic. "That's part of leadership," he adds. —By Karen Tumulty/Washington 




Daschle: Holding up the Contract 



30 



TIME, MARCH 25, 1996 



NATION 



The Lone Ranger 

Bob Dole was never one to surround himself with 
advisers. But now? They've got him surrounded 



By MICHAEL DUFFY WASHINGTON 

IN THE MOMENTS THAT HAVE MATTERED 
most in Bob Dole's life, he has found him- 
self alone. He was alone when he charged 
up a rocky hill to a German machine-gun 
nest, to be torn apart by an artillery shell. 
That experience took him to places where no 
one could help him. The surgeons could do 
only so much. His mother, who would have 
done anything for him, couldn't do anything 
when she came upon him hanging from the 
rafters of their garage by his shattered arm, 
trying to make it work again. 

Twice before he has lost his party's 
nomination, and now that he is finally on 
the verge of clinching it, he finds himself 
again alone in a place he has never been 
before: in the finals, facing a formidable 
incumbent President. The new experience 
has left the Candidate of Experience 
"somewhat off balance," says a top aide, a 
little unsure of his next move. So early next 
month Dole is going to take a week off, fly 
to Florida, sit in the sun outside his con- 
dominium and then gather around him a 
group of wise men and women to think 
through the campaign. Just holding such a 
meeting is unusual for Dole, who has never 
been quick to seek or take advice. "He has 
no peers," says a top aide. "He has col- 
leagues; he has friends. But all his real peers 
are dead. He's outlived them all." 

Dole has captured one of politics' great- 
est prizes without one of the most important 
ingredients of any successful campaign: a 
tight circle of trusted advisers who can tell 



him when he's right, when he's wrong and 
when he needs to shape up. Dole simply 
believes he knows more about politics 
than anyone else. The last man whose ad- 
vice he wholly trusted was Richard Nixon. 
"That was the only time I ever saw him sit 
up and sit still for more than 10 minutes 
and listen," said Tom Korologos, describ- 
ing a trip the two men made to the sage of 
Saddle River a few years back. Otherwise, 
Dole has preferred to keep his own counsel 
and even make fun of anyone who tries to 
change him. When an aide recently gave 
him an advance text of a speech, the candi- 
date quipped with trademark sarcasm, "Let 
me show this to my council of advisers." He 
pushes back when pushed too hard. When 
Senator Al D'Amato of New York urged 
Dole two weeks ago to attend a debate 
before the Texas primary— "You gotta go," 
D'Amato said, "you gotta go"— Dole teased, 
"Well, if you want me to, I won't." 

After 35 years in Washington, Dole has 
an astonishingly small circle. He has a co- 
terie of old friends, including Democratic 
Party viceroy Bob Strauss and Archer 
Daniels Midland Co. chairman Dwayne 
Andreas, but he does not seek their coun- 
sel. Other than his wife Elizabeth, who is an 
ad hoc adviser on nearly everything. Dole's 
inner circle is made up of Senators Pete 
Domenici of New Mexico, John McCain of 
Arizona and Bob Bennett of Utah, and 
even they say they are not sure what he 
absorbs. He taps experts on specific policy 
matters when he needs them— including 
his chief of staff, Sheila Burke, and adviser 



Robert Lighthizer— but does most of the| 
political thinking himself. > 

Whether or not he goes looking for ad- 8 
vice, advisers come looking for him. Two| 
weeks ago, a group of Senators approached 3 
Dole and urged him to use them regularly § 
as sounding boards. A few days later, theyn 
faxed talking points on trade and other j 
matters to his campaign plane; Dole sur-g 
prised them by using the material. Mean-| 
while, campaign manager Scott Reed hasj 
reached out to a group of elected officials, ? 
from House Speaker Newt Gingrich to; 
New Hampshire Governor Steve Merrill,? 
to help Dole sharpen his message. i 

People who aspire to counsel him have§ 
learned they must do it obliquely. Before f? 
the South Carolina debate in February, | 
McCain urged Dole to smile more, and like J, 
a high school drama coach, he planted? 
himself in the front row and smiled widely.- 
through the entire forum. Two weeks ago,S 
Dole was diluting the emotional high point" 
of his speech— his painful convalescence— S 
by rambling on about other things, like? 
Bosnia. Utah's Bennett, who was travelings 
with Dole, waited a few hours after one]' 
run-on speech and then pulled Dole aside? 
in a relaxed moment. "When you've told; 
the story of Russell," said Bennett, "theS 
speech is over. That's it." At the next event, s 
Dole brought the room to a hush with the ? 
story of his recovery; he was clearly « 
"aching" to go on, recalls Bennett, but 
closed quickly with "God bless America." 

Members of Dole's inner circle don't 
know if any of this advice will stick. When 
he returned to the Senate Wednesday 
morning, dozens of his colleagues were 
waiting outside his office with ideas about 
how to beat Bill Clinton. They grabbed him 
in the halls and cornered him at lunch and 
handed him notes, so that by afternoon he 
had to flee the building for a little peace. 
But if he doesn't always heed would-be ad- 
visers. Dole at least remembers what they 
say: it's a skill he learned long ago, by him- 
self, when he couldn't write things down. ■ 



TIME, MARCH 25, 1996 



31 



N A T I O N 



How (Very) 
Green Was 
My Valley 

Bottoming out in the 
presidential race can 
still pay off big time for 
the losing candidates 



By RICHARD LACAYO 



WHAT WITH STEVE FORBES AND ROSS 
Perot, a lot has been said lateK 
about rich men crowding into 
presidential politics. But that miss- 
es half the story. An unsuccessful run for 
the White House is a matchless opportuni- 
ty to acquire wealth, not just flaunt it. In 
war it may still be the victors who get the 
spoils. In presidential politics, losing pays 
better. Whoever wins in November can 
look forward to a $200,000 annual salary, a 
White House ringed with tank barriers and 
a Camp David getaway that's been de- 
scribed as "a medium-quality boys' camp 
without the horses." The also-rans are in 
the fast lane to Candy Land. 

First the speaking fees. Robert Bamett is 
the contract negotiator for vice-presidential 
losers Geraldine Ferraro and Dan Quayle 
and First Lady coulda-been Kitty Dukakis. 
In his calculation, an articulate candidate 
who departs the field with an honorable dis- 
charge—no scandals, a statistically de- 
tectable base of voter support— "can do five 
or six speeches a month, at fees ranging from 
$10,000 to $30,000 a speech, for a year at a 
minimum." Arithmetic: $600,000 to $2.1 
million in the first year. 

Books? Publishing insiders say a high- 
profile candidate could command an ad- 
vance of $300,000 and more. What's a high- 
profile candidate? One with controversial 
positions and some success among angiy 
voters. Publisher Judith Regan, whose 
celebrity authors include Rush Limbaugh, 
Howard Stern and O.J. prosecutor Chris 
Darden, sums up the field, "When I look at 
Lamar Alexander, I don't say, 'Aaah, book.' 
When I look at Steve Forbes and Pat 
Buchanan, I say, 'Aaaah, book.' " 

But not just any book. Publishing 
sources say that a few years ago, Buchanan 



ALAN KEYES 



HOW MUCH 
HE SPENT 



jtsm 



WHAT HE WILL GET OUT OF IT 
A doubling of his speaking fees, 
from $7,500 to $15,000 

WHAT ELSE HE COULD HAVE BOUGHT 
A 20% stake in an AM radio station 
in Columbus, Ohio 



i FORBES 



HOW MUCH 
HE SPENT 



r$3o 

^™a million 

^■JT/^A (ESTIMATED) 



WHAT HE WILL GET OUT OF IT 
,., ^^ 



WHAT ELSE HE COULD HAVE BOUGHT 
75,000 years of tax-preparation 

at H&R Block OR 
75,853 22-k 
0R1 

plus $2 n 
runth 



PATRICK 
BUCHANAN 



MtlLION 



WHAT HE WILL GET OUT OF IT 
A $300,000 pubiisr - - 



Wmmmm 



WHAT ELSE HE COULD HAVE BOUGHT 
A 236-acre prime Napa Valley 
vineyard (which could produce 
885,000 bottles of Chardonnay 
a year) OR 79 Mercedes-Benz 
S-600 luxury four-door 
sedans OR 73,311 black felt 



attempted to shop around a weighty man- 
uscript on his 1992 campaign. No takers. A 
dutiful account of a short-lived presiden- 
tial bid didn't look like a good bet. 
Buchanan might do better this time, says a 
prominent editor, if he offered a book on 
"how Dole and the EstabHshment tried to 
force him out of the race." 

The third of the big-three cash streams 
is broadcasting. In his last 13 months on 
Crossfire, Buchanan made $367,350. When 
his campaign is over, says cnn spokesman 
Steve Haworth, "we very much hope to 
have him back." No doubt they do, but 
Pitchfork Pat's higher name recognition 
should make his fees negotiable. He could 
also take a second crack at radio. Hugh 
Rodham, formerly a Florida Senate candi- 
date and still the brother of the First Lady, 
launched a show of his own in December 
that's already on 43 stations. Buchanan's 
talk show last year was picked up by more 
than 100 stations, enough for a $232,000 
payday. A realistic goal now would be to 
overtake the 125 that cany defeated Senate 
candidate and radio talker Oliver North. 
Impassioned also-ran Alan Keyes, who 
used to host a talk show heard in 10 markets, 
could also return to the mike. 

But what do you get for Forbes, the man 
who has everytliing? Product placement. 
Whatever else it was, the Forbes campaign 
was effectively a Foi'bes campaign, a six- 
month promo for the candidate's business 
magazine. In the long run, the boost in name 
recognition for his publication could well be 
worth more than the $30 million Forbes 
spent on the race. (Compare it, for instance, 
with the $150 million Ford Motors spent last 
year to relaunch the redesigned Taurus.) But 
to realize the advantage, Forbes may have to 
return friU-time to publishing. In the first two 
months of tliis year, while he was away from 
the office, ad pages dropped 23% from the 
comparable period in 1995. 

Media execs agree that whatever the 
candidates do to cash in, they had best do it 
soon. Old candidates have a limited shelf 
life. How limited? We'll know this summer 
when bookstores get Gary Hart's The Patri- 
ot: An Exhortation to Liberate America from 
the Barbarians. Free Press editorial director 
Adam Bellow, his publisher, says it's mod- 
eled on Machiavelli's The Prince: "He pro- 
vides a world view and political advice to 
anyone mnning for office in the current me- 
dia-saturated environment." That environ- 
ment, plus Donna Rice, was the very thing 
that undid Hart's candidacy in 1988. How 
come he didn't write about it then? "Well," 
says Bellow, "it took him a decade to fuUy 
grasp the implications." Somebody should 
have bought him a calculator. —Reported 
by Tom Curry/New York and Jeffrey H. Birnbaum/ 
Washington 



32 



TIME, MARCH 25, 1996 



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c 



By KARSTEN PRAGER 



CHINESE TROOPS LAUNCHING 
missiles that splash down 
perilously close to Taiwan 
and put its armed forces on 
high alert. A U.S carrier task 
force cruising the area, an- 
other sailing toward it. Wash- 
ington assessing whether— 
and how— it might have to help Taiwan 
should the island be attacked by China. 
These are the most serious signals to date 
about the state of relations between the 
world's sole remaining superpower and 
its sole up-and-coming superpower. One 
misstep and one misperception after an- 
other in recent years have bumped the 
U.S. and China closer to crisis. The latest 
rupture has been triggered by China's 
harsh warning to Taiwan, underlined by 
war games offshore, that it must remain 
committed to eventual reunification and 
squelch whatever dreams of indepen- 
dence it might be harboring. True, what is 
happening off Taiwan is pantomime 
rather than confrontation: eager to avoid a 
clash, both sides are merely using their 
military to lend muscle to political mes- 
sages. But to date neither Washington nor 
Beijing has given much indication that it 
knows the other well enough to ensure 
that pantomime belligerence does not 
someday give way to the real thing. 

Over the next decade— or two or three- 
China will be at the top rung of American 
foreign-policy challenges. As a rising nation, 
like others before it, China is demanding re- 
spect in proportion to its strengdi. That 
would be reason enough for increased con- 
cern in the U.S.— and Asian countries— but 
Washington has a wider range of interests at 
stake where China is concerned. 

Foremost is trade. The U.S. and China, 
a huge and largely untapped market of 1.2 
billion people, now do $50 billion worth of 
business with each other. Beyond that, the 
enormous amount of U.S. commerce with 
Asia as a whole gives Washington even 
more reason to discourage China from in- 
timidating its neighbors, to say nothing 
of starting a war. China poses a particular 
security worry because it has atomic 
weapons and has sent nuclear technology 
to other countries. Finally, the U.S. has 
both a moral and a realpolitik interest in 
seeing China improve its human-rights 
record. Encouraging the establishment of 
democracy and the rule of law not only sat- 
isfies America's sense of mission in the 
world but, if successful, would make China 
more stable. 

China is not Haiti or Bosnia, places 
where America's involvement may be de- 



36 




TIME, MARCH 25, 1996 



R 



D 




will never work. What should Washington do 



SHOW OF FORCE: Chinese troops made 
their point late last year during amphibious 
exercises on the Fujian coast facing Taiwan 

sirable but is ultimately optional. (Jhina is 
not optional. A half-century after World 
War II, the U.S. remains the dominant 
power in the Pacific, and to the degree 
that it tries to maintain influence there, it 
will inevitably knock up against China's 
rising importance. The peace and pros- 
perity of the world in the next century de- 
pend in many ways on what Beijing does. 
How should the U.S. handle it? There are 
essentially two prescriptions: a policy 
called comprehensive engagement, and 
one that goes under the old cold-war 
name, containment. 

The goal of comprehensive engage- 
ment, the approach pursued by all U.S. 
Presidents since Richard Nixon, is to 
bring China into the world community 
through broadly based dialogue and 
diplomacy; an example is the Pentagon's 
pohcy of expanding contacts with the Chi- 
nese military through naval visits and of- 
ficial exchanges. Admiral R.J. Zlatoper, 
the commander in chief of the U.S. Pacif- 
ic fleet, has made a priority of better mih- 
tary-to-military relations. "I see myself as 
a missionary, not just a war fighter," he 
says. "I sense on the Chinese side an equal 
interest in being engaged with us." 

The advocates of containment are led 
by an odd-bedfellow alliance of human- 
rights activists and old cold warriors. 
"Both [Senator Edward] Kennedy and 
[Senator Jesse] Helms are in a pro-Taivv'an 
mode," says a senior U.S. official, "the for- 
mer because of China's appalling human- 
rights record, the latter because Taiwan is 
the last anticommunist country in the 
world." Angered by what they interpret as 
Beijing's uncompromising, uncoopera- 
tive behavior, the containment forces are 
convinced China is a bully that needs to 
be disciphned, not indulged. They urge 
that the U.S. get tough and stop acquiesc- 
ing. Says former Secretary of Defense 
Caspar Weinberger: "Their whole foreign 
policy has turned suddenly much more 
aggressive, and that bodes no good for the 
nature of any people." 

Across the board, the critics contend 
that comprehensive engagement has 
amounted to giving in to China whenever 
the two countries have come into conflict. 
To some degree, the record over the past 
few years bears that out. China's responses 
to Washington's efforts have been "a mixed 
bag," says a State Department official. The 
U.S. has been quietly appreciative of Bei- 
jing's cutoff of military assistance to the 
Khmer Rouge in Cambodia in 1990, of its 
cooperation in the apparently successful 



TIME, MARCH 25, 1996 



37 




effort to freeze North Korea's nuclear- 
weapons program and of its restraint in us- 
ing its U.N. Security Council veto against 
U.S. initiatives. But Washington remains 
utterly frustrated by insensitivity— if not 
outright resistance— to other American 
concerns where China is giving little 
ground or no ground at all. 

In 1993 President Clinton "delinked" 
Beijing's human-rights record from the 
annual decision on whether to grant Chi- 
na most-favored-nation trading status. 
The rationale was that repeated attempts 
to deny this status had not only made Chi- 
na more recalcitrant but also threatened to 
hurt U.S. business in China. By reinforc- 
ing trade ties, the Administration argued, 
the U.S. would be in a better position to in- 
fluence China on human rights. But Chi- 
na's record has not improved. The State 
Department's latest annual report, made 
public two weeks ago, talks of "wide- 
spread and well-documented abuses," 
particularly in Tibet. 

Beijing has continued to test atomic 
weapons, transferred nuclear-arms tech- 
nology to Pakistan and sold missiles to 
Iran. Clinton is still deciding whether to 
impose certain economic sanctions on 
China to punish it for the Pakistan deal, as 
the law requires, or to waive such penal- 
ties as he has in similar circumstances. On 
the trade front, there is also disappointing 
news: estimates of the U.S. trade deficit 
with China range from $20 billion to $35 



biliion, (Icpnulni- on how I lon.u Kon,^ 
transshipments are counted; moreover, 
Beijing has failed to vigorously enforce 
agreements with the U.S. that outlaw pira- 
cy of videos, CDs and software. 

Meanwhile, despite assurances that it 
seeks a negotiated solution, China has rat- 
tled its neighbors by claiming sovereignty 
over the Spratly Islands in the South China 
Sea, where six countries have competing 
territorial claims. It has also repeatedly in- 
terfered in the affairs of Hong Kong, the 
British colony that will return to Chinese 
sovereignty next year, supposedly with a 
"high degree of autonomy." 

Beijing is also building up its militaiy 
In 1979 Deng Xiaoping told the generals 
and admirals of the People's Liberation 
Army that they would have to wait 10 years 
before they could collect their share of the 
wealth created by modernization. With the 
military's needs relegated to the lowest 
rung in his grand reform scheme, the de- 
fense budget was effectively frozen, and 
manpower was pared down from 4 million 
to 3 million. "Now the bill has come due," 
says a Washington analyst, "and the post- 
Deng leadership is paying." 

Washington knows China is playing 
catch-up and is not overly worried about 
the military expansion: by most estimates 
it will be at least two decades before Bei- 
jing has the capacity— specifically a blue- 
water navy— to project power at a dis- 
tance. That could change, of course. Last 



vear an uiiollicial stiuK, not cndoiscd by^^; 
the U.S. Defense Department, concluded S 
that "Chinese military officials believe the? 
present gap in their capabilities is tempo-" 
rary and the long-term goal is to be a glob- ^ 
al military peer of the U.S." The Clinton^ 
Administration is assessing whether to 
sell China technology to build turbine en- 
gines that some experts think could be 
used to power cruise missiles. Such 
weapons, according to U.S. Navy officials, 
played a decisive role in a classified war 
game, simulated in 1994, in which Chi- 
nese forces "defeated" the U.S. Seventh 
Fleet in 2010. Later this year, the Nation- 
al Defense University in Washington will 
publish a study that estimates that China 
could surpass the U.S. as a superpower in 
35 years. 

By tolerating the ways in which China 
acts against U.S. interests, the Clinton Ad- 
ministration would seem to be engaged in 
a very generous form of comprehensive 
engagement. That is not how the Chinese 
see it. As far as they are concerned, Chn- 
ton's pohcy is containment by another 
name. Not only have Washington's ha- 
rangues on human rights rankled, but 
there have been other sources of friction. 
Because of pressure from the U.S., Beijing 
believes, it lost its bid to host the 2000 
Olympics, which went instead to Sydney, 
Australia. Washington has blocked China's 
membership in the World Trade Organiza- 
tion, which Beijing wants as a venue for 



38 



TIME, MARCH 25, 1996 



WORLD 



reconciling trade disputes and obtaining 
more favorable tariff treatment. The U.S. 
has also explored a closer military rela- 
tionship with hidia, against which China 
fought a war in 1962, and last year estab- 
lished full diplomatic relations with Viet- 
nam, a traditional enemy that repulsed a 
Chinese inxasion in 1979. 

James Lilley, a former U.S. ambas- 
sador to China, explains, "China sees 
America snuggling up to India and kicking 
Pakistan in the shins, recognizing Viet- 
nam, selling F-16s to Taiwan, walking 
hand in hand with Japan into the 21st cen- 
tury, wanting a united Korea under Seoul 
allied with the U.S." What does it look like 
from the Chinese perspective? Lilley an- 
swers his own question: "A ring around 
China." 

All this must be viewed in tlie context 
of Beijing's current state of fragility, with 
Deng Xiaoping on his deathbed and his 
designated successor, Jiang Zemin, not 
firmly in control. Despite the government's 
success in raising the standard of living, its 
problem list is long: money-losing state en- 
terprises, more than 100 million basically 
unemployed migrant workers, rampant 
corruption, growing gaps between rich and 
poor as well as between the booming 
coastal provinces and the neglected hinter- 
land—all tinder for potential social unrest. 
Perhaps most important, an ideologically 
bankrupt Communist Party is relying on 
repression and nationalism to keep itself in 
power and the country united. 

Small wonder that U.S. -China ex- 
changes, as Lilley puts it, are a "dialogue 
of the deaf." Weakened initially by the end 
of cold-war pressure to cooperate against 
the former Soviet Union, the relationship 
is in its worst shape since the Tiananmen 
massacre in 1989. 

What should the U.S. do? For all the 
setbacks, over the long run, comprehen- 
sive engagement, in a more muscular form 
than that practiced in recent years, has the 
best chance of creating a balanced, fruitful 
relationship. The U.S. should be hard- 
nosed on nuclear proliferation and intel- 
lectual-property rights, and may find it ad- 
vantageous to enlist friends' and allies' 
support in that endeavor instead of going 
it alone. In the more sensitive area of hu- 
man rights, a breakthrough will probably 
have to await the arrival of a new genera- 
tion of leaders in Beijing, but the U.S. 
should acknowledge whatever httle prog- 
ress China has made. Says Burt Levin, a 
veteran China analyst and former U.S. 
diplomat: "Chinese citizens have greater 
freedom today than they have had in 50 
years. To be oblivious to that is foolish." 
Comprehensive engagement, sums up 
Secretary of Defense William Perry, "does 



not mean that the U.S. will acquiesce to 
[Chinese] actions with which we disagree. 
But we will not try to isolate China over 
these issues. You cannot isolate a country 
with more than a billion people." 

Last year Joseph Nye, who has since re- 
tired as Assistant Secretaty of Defense, 
warned, "If you treat China as an enemy, 
China will become an enemy." A contain- 
ment policy such as the one the U.S. used 
to hem in Moscow, says Perry, "could actu- 
ally undermine our security, because a Chi- 
na that feels encircled is quite unlikely to 
cooperate on vital U.S. security interests. 
Containment could create those security 



problems. It could piisli r:liiii;i lo acceler- 
ate its defense iihmIci Mi/iiimii, which 
would contribute to a K-jional arms race, 
increasing the likelihood of militai^ con- 
flict in hot spots like Taiwan, the Spratly Is- 
lands, the Korean peninsula." 

Containment could also spark a trade 
war, in which the U.S. and China might 
close their markets to each other, with 
ripples spreading to other countries in 
the Pacific. Equally important, a hard- 
line policy toward Beijing would put 
stress on U.S. alliances in the region. "Not 
a single friend and ally would join us in 
such a strategy," suggests a ranking Ad- 



CHINA'S MIUTARY: LOOKS GOOD ON PAPER 



2.9 million 



^AMt^t 



Source: Military Balance 



DANGEROUS GAMES 



Missile-launching site 




Troops are poorly trained for modern warfare. Weaponry is 
10 to 20 years out of date 

Most tanks are a modified version of the Russian T-54 first 
built in 1947: slow, small, poorly armored 

Navy is small (U.S. has 137 warships) and suitable only for 
protecting the coast; only seven warships are modern 

Aging diesel submarines; Russian-built Kilos that are quiet, 
fast and able to spend 60 days at sea have been ordered 

Combat planes are re-engineered Soviet-designed aircraft 
produced in the 1960s and '70s. No airborne radar and 
warning capability 

Intercontinental missiles have ranges of 9,300 miles (15,000 
km) and 4,350 miles (7,000 km). Intermediates have ranges 
of 1,700 miles (2,700 km) and 1,120 miles (1,800 km) 



ff Okinawa 
" JAPAN 



Independence 
^ and batt le group 

McClusky 



Bremerton Columbus 

South Chine Sea Bunker Hill 

Aegis missile cruiser 



PACIFIC OCEAN 



^ 



Nimitz group on the way 

Portsmouth 



Chinese military exercise areas 
Targets of Chinese missile tests 

TIMEMapbyPaulJ. Pugliese 



TIME, MARCH 25, 1996 



39 



W O R L D 



ministration official. "We'd be all alone, 
and that would cause severe strains with 
Japan, South Korea, Australia and in 
Southeast Asia." Singapore Senior Minis- 
ter Lee Kuan Yew, an astute analyst of the 
region, takes the point a step further: 
"The last thing Asia wants is contain- 
ment. First, it will not succeed. Second, 
you will have absolutely no influence on 
how China and its attitudes develop: it 
will be hostile and xenophobic to the 
West, and that's no good for us." Says 
Levin: "Dealing with China as an enemy 
strengthens the know-nothings in Beijing 
and means that the pragmatists are no 
longer willing to carry 
America's water." 

For engagement to 
work, however, the LlS 
must maintain its militan 
presence in Asia. The U S. 
Pacific Command com- 
prises 200 ships, 2,000 
aircraft and 300,000 sol- 
diers, sailors, airmen and 
Marines, of whom 100 000 
are "forward deployed" m 
South Korea, Japan and at 
sea. As long as there is a 
danger of war on the Koic- 
an peninsula, a drav\'do\\ii 
of U.S. forces is unlikely, in 
the meantime, they helj) 
stabilize the entire region 
The presence of 47,()()() 
U.S. troops in Japan, for ex- 
ample, reassures not only 
Tokyo, which is carefully 
monitoring its great neigh- 
bor's rise to power, but 
even China, which along with other Asian 
countries is worried about Japan's rearm- 
ing. "We are concerned about what kind of 
China will emerge," says Singapore's Lee. 
"The problem is of such gigantic size that it 
is not solvable in the Asian context alone. It 
is balanced only if the Americans are here, 
along with Japan. America alone is credible 
for 10, maybe 15 years, but not beyond." 

Right now, the key test case for Amer- 
ica's China policy is Taiwan. On March 
23, it will hold a presidential vote— the 
first time in the 4,000 years of Chinese 
history that a leader will be chosen in a 
free election. The winner is likely to be 
Lee Teng-hui, the current President, who 
has infuriated Beijing by seeking greater 
international recognition for Taiwan. 
Beijing insists that the island is part of 
China and eventually it will be reinte- 
grated. Lee, at least officially, accepts the 
objective of reunification, although Bei- 
jing and his political opponents at home 
have been questioning his sincerity. 

The U.S. too is pledged to a one-China 



policy, but Beijing has come to suspect that 
Washington is backing away from it. When 
the U.S. granted Lee Teng-hui a visa last 
year for a private visit to his alma mater, 
Cornell University, Beijing was irate. Hard- 
liners and moderates in the leadership may 
disagree on any number of questions, but 
they are of one mind when it comes to sov- 
ereignty over Taiwan; there is no room for 
compromise. "No leader in Beijing," says 
Ralph Cossa, executive director of Pacific 
Forum CSIS, a Honolulu think tank, "could 
survive if he lost Taiwan." Beijing's current 
missile diplomacy backs up earlier warn- 
ings by President Jiang that Taiwan must 




STREETS OF TAIPEI 



stick to the one-China policy and that a de- 
claration of independence means war. 

While tlie U.S. acknowledges that the 
island is part of China, it is also pledged to 
view an attack on it with "grave concern"— a 
purposely ambiguous statement that not 
only angers America's containment advo- 
cates but also ftaistrates Beijing. When Chi- 
nese officials felt out Nye in late 1995 about 
a U.S. reaction if China were to threaten Tai- 
wan, he told them, "Nobody knows." In a lat- 
er interview with Time, he elaborated, say- 
ing, "There's less ambiguity here than 
meets the eye. But we don't want either side 
to rock the boat. We don't want Taiwan to de- 
clare independence, which would be the 
case if we gave it a blank check, and we 
don't want the Chinese to use aggressive tac- 
tics, which would be the case if we gave them 
a blank check. I told the Chinese that vVmer- 
icans are unpredictable: even if we said we 
wouldn't defend Taiwan, the U.S. Congress 
and the American public might change their 
minds. The moral of the story is, be very 
cautious. As you saw in 1950— when we said 



we weren't going to do anything in 
Korea— we were at war within the year." 
The generals in Beijing, says Andrew 
Nien-Dzu Yang, a Taiwan specialist on the 
Chinese military, "don't want a confronta- 
tion with the U.S.," but some of Beijing's 
rhetoric about the U.S. commitment to 
Taiwan has had a harsh tone. Whether 
with pure bluster or a touch of psy-war, a 
member of the general staff late last year 
told Chas. W Freeman, a former U.S. 
diplomat in Beijing and Assistant Secre- 
tary of Defense, that "America will not 
sacrifice Los Angeles to protect Taiwan." 
At this point China lacks the military 
capability to bring off a 
S successful invasion of a 
3 well-defended Taiwan. 
^ Even if the Chinese had 
I the amphibious equip- 
? ment needed to move 
° large numbers of troops 
i across the 100-mile Tai- 
wan Strait, U.S. military 
experts estimate that Bei- 
jing would have to deploy 
half a million men for a 
victorious assault and that 
casualties would be in the 
range of 50%. True, China 
could seriously damage 
Taiwan's economy with a 
naval blockade or spo- 
radic missile strikes, but it 
would also suffer by losing 
foreign support, particu- 
larly the substantial Tai- 
wanese investment on the 
mainland— $29 bilhon, by 
most estimates. 
For now, war almost certainly is not on 
Beijing's mind. According to one Chinese 
official, "While we have contingency 
plans on Taiwan, we do not intend to in- 
vade Taiwan." As matters stand, the likely 
scenario is that Taiwan will have its elec- 
tion this Saturday; Lee will win and per- 
haps declare his commitment to reunifi- 
cation more explicitly, thereby allowing 
China to back off. Even Beijing agrees 
that reunification will not take place until 
some time in the future, when the soci- 
eties on the two shores of the strait are 
more closely synchronized. The immedi- 
ate crisis will pass, and the two sides 
will not have irreparably antagonized 
each other. But how will they fare at 
resolving the next conflict when it comes 
along, as it surely will? Comprehensive 
engagement may still be the right path, 
but it would yield better results if 
both sides also engaged in more mutual 
comprehension. —With reporting by 

Lewis M. Simons and Marl( Thompson/ 
Washington 



TIME, MARCH 25, 1996 



U N 1, 1 M I T !■: D P A K T N V. K S 




STEVE KITTELL FROM THE AILAXTA 



AMES with K)HN SCANLAX FROM ARAMARK. 



cc 



ANYONE WOULD HAVE SEEN 



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AN OLYMPIC DINING HALL 



y^ 



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kitchen and dining hall on a parking lot. It's a mind-set that makes it possible for John to add. In just over four weeks, we'll prepare 
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•••*• 




m The Lost 



mr> 



A monster goes on the rampage, and a 
small town in Scotland is scarred forever 




By JAMES 0. JACKSON 

HgHOR THOSE WHO STOOD, BEWIL- 
^^^dered, on the streets of Dunblane 
H|| that terrible day last week, the sight 


headmaster and one of the 
first to reach the scene of the 
killings. "We don't know why, 
we don't understand it, and I 
guess we never will." 

So far, authorities can 
only put together the se- 
quence of events that led to 
the evil of Dunblane. The start 
might be traced back as far as 
1974, when Boy Scout officials 
dismissed Hamilton, then 21, 
for "inappropriate behavior" 
as leader of a local troop, and 
to subsequent incidents in- 
volving his attempts to orga- 
nize boys' sports clubs in the 
area. Or it might have arisen 
from his fascination with 
handguns, which he obtained 
as long as 20 years ago and 
owned legally despite strict 
British laws. But whatever its 
origins, the culmination came 
at around 9 a.m. Wednesday 
when Hamilton left his shab- 
by bachelor apartment and 
headed for the school. A 
neighbor, Kathleen Kerr, 71, 
said he waved to her as he 
stepped into a car. "He 
seemed cheerful and perfect- 


1 «f.^ 
* TO 


^s^ 


^^^ of the anguished woman is one they 
H can never forget, a defining vision of 
H the Scottish town's moment of hor- 


il 


{^ 


I^L 1 


ror. "Victoria!" she cried, as a convoy of 
ambulances sped past, sirens screaming 
and lights flashing. "Victoria!" That was 
one of the names; Victoria. Others, read 
out in a mournful voice by police chief su- 
perintendent Louis Munn, were as famil- 
iar and as evocative of middle-class Scottish 


1 




family life: Emma, Melissa and Megan; 
Charlotte, Kevin, Ross and Hannah; 
David, Mhairi, Brett and Abigail; Emily, 
Sophie, John and Joanna. Ordinary names, 
pretty names, the names on teachers' at- 
tendance lists, on captions of school pic- 
tures, on programs for school pageants, on 
lineups for school games. And they are the 
names of the dead and maimed of Dun- 
blane's little primary-school gymnasium 
where a man wdth a pocketful of pistols and 
a mind filled with hatred massacred 
children. 

In all, 16 five- and six-year-old first- 
graders and their teacher died Wednesday 
when a failed youth leader named Thomas 
Hamilton, 43, barged into the school and 


T^Jf 


^m i^m 




emptied four handguns into them as they 
screamed and cowered in the gymnasium. 
Two other teachers and 12 children were 
wounded, three critically, before Hamilton 
put one of the guns to his head and blew 
part of it away. Nobody can know just what 
monsters of the psyche drove the strange 
moonfaced man's mind to crack at that mo- 
ment, or why he chose the gentlest, most 
innocent of the school's 729 pupils to be the 
victims of his inner torments (see Essay). 
For those who lived through it, the ques- 
tions have but one answer. "Evil visited us 
yesterday," said Ron Taylor, the school's 


ly happy," she said. 

He was not. In the pockets 
coat he carried four loaded hand 
Browning 9-mm automatics anc 
magnum revolvers— plus a packe 
ly angry letters to British news 
tions detailing his grievances a 
town for treating him as a "perve 
parently stopped to mail the left 
reached their destinations two 
Then he went directly to the s 
was at the entrance at about 9:2. 

He started shooting in the pi 
then down a corridor as he mac 


of a black 
guns— two 
\ two .357 
tofbitter- 

organiza- 
gainst the 
rt."Heap- 
ers, which 
days later, 
chool. He 
5 a.m. 
ayground, 

e his way 


to the gymnasium. Firing from a corner of 
the room, Hamilton hit teacher Gwenne 
Mayor as she tried to shield the 29 chil- 
dren she had taken there for phys ed. She 
died on the spot. Then he moved around 
the room, methodically shooting the 
screaming children, chasing some as they 
ran and pumping at least one and some- 
times three or more bullets into the little 
bodies. Then he retreated to a corner away 
from the carnage and fired the final bullet 
into his own brain. 

Rescuers were greeted by a hellish si- 


44 TIME, MARCH 25, 1996 



'^H 



lolU 






\ 



lence: no cries, no screams, very little 
movement at all amid a chaos of scattered 
shoes, clothing, blood and painfully small 
bodies. "I just cannot get the images out of 
my head," said headmaster Taylor. 

By all accounts Hamilton was odd. The 
woman he always beheved was his sister 
was, in reahty, his mother. His father, 
Thomas Watt, 65, abandoned the family 
when Hamilton was 18 months old. He 
never took interest in him again until he 
learned, with shock, of the kiUings. "I can't 
live with this," Watt said. "I brought this 



monster into the world." It was a world 
that proved difficult for a man whose com- 
pelling life interest appeared to be youth 
leadership— but who was regarded in town 
as a pedophile. His attempts to organize 
boys' clubs ended when parents withdrew 
their sons after hearing of Hamilton's ab- 
normal interest in the boys' bodies. Said 
Gerry Fitzpatrick, 27, owner of a bar in 
Dunblane who attended one of the clubs in 
his teens: "He would make us take off our 
shirts all the time. He liked looking at us. 
There was something creepy about him." 



If some thought him a "sicko" and "a 
loner," no one could have foreseen the 
depth of evil in their midst. At the local 
morgue, hospital chaplain Jim Benson 
comforted parents as they identified their 
children. But no words, no memorials or 
visits by the Queen will make it easier for a 
parent to comprehend that a son, a daugh- 
ter is never going to wake again. After one 
mother looked at her dead child, she turned 
to Benson and said, "My baby always sleeps 
like that." —Reported fey Michael Brunton/ 
London and Barry Hillenbrand/ Dunblane 



TIME, MARCH 25, 1996 



45 



BUSINESS 



Why Subsidies Survive 

Congress has surrendered in the war against corporate welfare 



fW^P, f^T^^ 




SHIPPING 



WHOM DO SUBSIDIES HELP? Shipbuilders get government support to construct vessels that 
the merchant fleet may not need. Yet Congress is unlikely to withdraw the funding 



By KAREN TUMULTY WASHINGTON 

THE MILLION DOLLARS THAT TAXPAY- 
ers spend to promote Uncle Ben's 
rice in Poland, Turkey and Saudi Aj-a- 
bia. The $2 billion government outlay 
tliat helps keep electric power a bar- 
gain in Aspen and Hilton Head. The $3 mil- 
lion that a cargo-ship owner can expect to 
pocket for making his vessel available to 
Uncle Sam in waitime— even tliough die 
Pentagon no longer wants it. Was it only a 
year ago that the full-tliroated budget war- 
riors of die Republican revolution were 
unleashing a pitiless campaign to cut off die 
tens of billions of dollars expended each year 
on subsidies and tax breaks for big business? 
Earlier this month a bipartisan group 
of Senators proposed creating an indepen- 
dent commission to handle corporate- 
welfare reform. This is Washington's ver- 
sion of "Please continue to hold. A service 
representative will be with you shortly." 
But it was the best they could do, since 
neither Congress nor the White House 
seems capable of tackling the issue. 

Even that feeble effort stands litUe 



chance of being taken seriously. The ur- 
gency of balancing the budget has given 
way to the urgency of getting re-elected. 
That means politicians of both parties will 
be busy collecting campaign contributions 
from PACs and interest groups tied to the 
veiy businesses that are targets of reform. 

Ending coiporate handouts is one of the 
rare topics on which activists and think tanks 
from both the left and the right find agree- 
ment. By some estimates, the government 
funnels up to $75 billion a year to business, 
enough to account for almost half the feder- 
al deficit. The Agriculture Department, for 
instance, will spend $110 milHon this year to 
adveitise overseas everything from V8 juice 
to Friskies, a "market promotion" budget 
tiiat is almost 30% higher than in 1995. As 
these companies are among the world's best 
at marketing, "it's hard for me to believe that 
McDonald's needs government bureau- 
crats to tell them how to sell Chicken 
McNuggets," says Beau Boulter, chairman 
of the antitax group Capitol Watch. 

Governments have long used subsidies 
as economic-development tools, particu- 
larly in nascent industries. But economists 



argue that in mature industries subsidies 
ultimately do harm by propping up ineffi- 
cient and unproductive firms. 

In some cases, federal help distorts the 
industries it seeks to stabilize. For instance, 
by spending billions to insulate the nation's 
dwindling shipbuilding industry from 
cheaper foreign competition, the govern- 
ment may be temporarily salvaging high- 
paying jobs. But why put more ships into the 
water when the ones already afloat are hav- 
ing trouble making a profit? Still, this De- 
pression-era program stands a good chance 
of being renewed this year— in no small 
measure because maritime unions and 
business pacs have contributed more than 
$17 million to congressional campaigns over 
the past decade, according to the watchdog 
group Common Cause. 

Last year viitually every proposal to cut 
corporate welfare met a quiet deadi at the 
hands of the committees that pass on spend- 
ing and tax legislation. Wliat House Budget 
Committee chairman John Kasich and his 
forces considered unjustifiable giveaways 
other Congressmen defended as vital to 
their districts. In die end, the 25 or so pro- 



46 



TIME, MARCH 25, 1996 



CAMPBELL SOUP 




GOVERNMENT 
PAYMENT: 
$1.1 million for 
product promotion 

REVENUES: 
$6.7 billion 

NET INCOME: 
$630 million 



TEXAS INSTRUMENTS 




GOVERNMENT 

PAYMENT: 

$13 million for military 

to civilian technology 

REVENUES: 
$10.3 billion 

NET INCOME: 
$691 million 



E & J GALLO WINERY 



GOVERNMENT 
PAYMENT: 
$2.6 million for 
product promotion 

REVENUES: 
$1.5 billion 



''**"e/i,i.ioc«i£' 



NET INCOME: 
N.A. 

e: Cato Inst., IMPACT'S Beverage Studies, foreign Agriculture Service All figures 1994 

grams considered most egregious by critics 
from all sides— say, building logging roads 
for timber companies at government ex- 
pense—saw their budgets nicked some $2.6 
billion, or only 16%, says Stephen Moore, fis- 
cal-policy director of the libertarian-leaning 
Cato Institute. And for all its denunciation of 
"aid to dependent corporations," the White 
House actually recommended a 4% increase 
in spending for those programs. 

Kasich has pledged to renew the fight, 
but he has already given up at least half the 
battle. This year the Budget Committee 
will focus its effort entirely on direct pay- 
ments the government makes to business, 
ignoring the estimated $50 billion a year 
Washington grants in tax breaks. 

The Repubhcans are aware that voters 
will not rally to a party that doesn't extend the 
war on entitlements to wealthy contributors 
as well as less powerful interests. "It obvi- 
ously harms our credibility," says Arizona 
Repubhcan John McCain, a leading backer 
of the idea of creating an independent com- 
mission. "And that's why, over time, we're 
going to succeed." —With reporting by 

Bernard Baumolii/New York 



A Fork in Tobacco Road 

Liggett breaks ranks and settles several lawsuits. 
Can the other cigarette makers still hang tough? 



IT BEGAN OVER A DRINK IN A NEW YORK 
City hotel, after two adversaries agreed to 
settle a hard-fought case about defective 
plumbing pipes. "What are you going to 
do next?" New York attorney Marc Ka- 
sowitz asked. Don Barrett, a Mississippi 
lawyer, explained that he was involved in 
his state's lawsuit to recoup Medicaid mon- 
ey spent treating smoking-related illnesses. 
Kasowitz quizzed him, but, says Barrett, "I 
didn't realize he was the personal friend and 
attorney for Ben LeBow." Not until a few 
weeks later, that is, when Kasowitz called 
Barrett to arrange a meeting and floated the 
news that his client, Bennett LeBow, major- 
ity shareholder in the Liggett Group, was 
ready to cut a deal. 

With the announcement last week that 
Liggett, the smallest of the na- 
tion's five major cigarette mak- 
ers, had agreed to settle the Cas- 
tano class action in Louisiana on 
behalf of all smokers and five 
state Medicaid suits against cig- 
arette makers, the landscape of 
tobacco litigation underwent a 
seismic shift. In real dollars, the 
terms of the agreement— Liggett 
will wind up paying less than 
$2 milhon a year over the next 
25 years toward antismoking 
programs, and will comply with 
proposed Food and Drug Ad- 
ministration rules about mar- 
keting to children— have little 
bite. Any capitulation, however, 
marks a drastic change. Publicly, 
at least, the other tobacco com- 
panies are hanging tough. "We haven't 
changed our assessment on strategy, which 
is that we don't intend to settle these cas- 
es," says Steven Parrish, senior vice presi- 
dent for corporate affairs at Philip Morris. 
But Time has learned that even before 
news of the Liggett deal broke, other settle- 
ment feelers had gone out. Florida state sen- 
ate minority leader Ken Jenne says that last 
Tuesday he was approached by Jon L. 
Shebel, president and ceo of the powerful 
Associated Industries of Florida, a lobbying 
group that includes Phihp Morris, R.J. 
Reynolds and the Tobacco Institute. Shebel 
confirms that a conversation took place in 
which actual dollar amounts were bandied 
about. He admits that he mentioned pay- 
ments of $105 million a year, "for a long 
time, maybe indefinitely," to setde the state's 



$1.4 billion lawsuit. He says he was not talk- 
ing with Jenne at the behest of the tobacco 
industry, but comments, "We all know who 
the targets of this lawsuit are." Tobacco- 
industry lawyers say they know nothing of 
the talk. "Philip Morris doesn't want to set- 
tle," says a tobacco-industry lawyer. "We 
don't know what Shebel is doing." 

What the other cigarette companies do 
is of little interest to LeBow, a takeover 
artist who has set his sights on R.J. R. Nabis- 
co. "He's in it to make money," says 
Richard Scruggs, one of whistle-blower 
Jeffrey Wigand's lawyers, who is helping 
on the Mississippi Medicaid suit. "This is a 
very sophisticated business transaction by 
Bennett LeBow." If LeBow can force a 
merger between Liggett and R.J.R., then 




VICTORY: 
settle the 



Five attorneys general agreed with Liggett to 
Medicaid suits, and others may in the future 

R.J.R. will participate in the settlement, 
moving out from under the shadow of in- 
cessant litigation, boosting its stock price 
and enabhng LeBow to split the company's 
food and tobacco divisions. Even if this 
scheme fails, LeBow tells Time, "it was a 
good economic deal for us to settle." 

In fact, the costs of the settlement are 
about one-fifth what the company has been 
hemorrhaging in legal fees each year, not to 
mention its share of the record $4.1 million 
in political donations made by tobacco 
companies in 1995. The only losers in the 
great tobacco sweepstakes may be all those 
smokers, who will get no cash— only the 
chance to attend a Smokenders class on the 
industry's dime. —By Elizabetli G/eicfc. 

Reported by Elisabetli Kauffman/Nasliville, Elaine 
Rivera/New York and Elaine Shannon/Washington 



TIME, MARCH 25, 1996 



47 



B U S I N E S S 



Luxury's Gaudy Times 

Back in form, the rich have decided that modest 
spending is better left to those who can afford it 

By JOHN GREENWALD 



IF AMERICAN CONSUMERS ARE SO WOR- 
ried about their jobs and armpit-deep in 
debt, why do Mont Blanc's five U.S. 
stores keep running out of their 888 
Prince Regent pens, at $5,900 a pop? And 
why does Chanel have a waiting fist for its 
$2,999 double-breasted tweed dresses for 
■ spring, which have yet to reach the stores? 
; Well, if you have to ask, it's because 
(the rich are back to being different. Fol- 
' lowing a brief, unsatisfying fling with 
; modesty in the early 1990s, they've re- 
inewed their lust for luxe and are making 
J upscale stores the brightest spot on the 
; dowdy U.S. retail scene. 




■92 '93 '94 '95 '95 



-1,000 



POSH IS HOT: And 
discount is not 



Paris designer Marie-Claude Lahque 
has seen this frenzy close up. When La- 
hque signed crystal ware and bottles of 
perfume at Manhattan's tony Bergdorf 
Goodman store last week, shoppers 
snapped up nearly 100 items, including 
$2,750 perfumes and a $4,700 vase. "In 
two hours we did the kind of business we 
normally do in six months," said an awed 
spokeswoman for Lahque's company. 

Profits at Tiffany jumped 34%, to a 
record $39 million in 1995, even as mass 
merchants such as Caldor and Jamesway 
were trooping into bankruptcy court and 
closing hundreds of stores. Gucci, the once- 
moribund designer and retailer of fashion 
apparel, has come roaring back under 
Bahrain-based Investcorp, which said just 
last week that it plans to sell its remaining 
51% stake in Gucci to the pubhc for some 
$1.1 billion this year. Investcorp will also 
sell shares in its resurgent Saks Fifth Av- 
enue chain this year, six years after buying 
the once-fiagging operation. 

The success of such stores reflects a 



widening split in the U.S. be- 
tween families with moderate 
and middle incomes and those 
earning $100,000 or more. 
Says Maureen McGrath, who 
follows retailing for Smith Bar- 
ney: "Affluent consumers are 
becoming more affluent while 
the less affluent are becoming 
less so." 

This gap shows up dramatical 
ly on the selling floor. Isaac Lagns 
do, publisher of Tactical Retail 
Monitor, an industry newsletter, es- 
timates that sales of designer items 
such as $200 Hermes scarves and 
$1,745 Chanel handbags grew a whop- 
ping 18% last year, to 
$30 billion, while sales 
of general merchan- 
dise—everything from 
toys to towels to 
T shirts— rose only 
4.5%, to $575 billion. 
"The low end is tapped 
out," says Merrill 
Lynch analyst Peter 
Caruso. Indeed, cred- 
it-card delinquencies 
are at a 10-year high. 
And feeble sales 
growth has forced dis- 
counters such as Wal-Mart, K Mart and 
Toys R Us to squeeze pricing until the 
bottom hne hurts; underperforming 
stores are being forced shut. 

So while Payless ShoeSource clos- 
es or relocates some 10% of its 4,500 
discount stores, Gucci can't keep 
enough of its $295 high-heel pumps in 
stock. Nor has business slowed at Geary's 
Beverly Hills in that California city, where 
tableware goes for $1,000 a setting. Geary's 
wrapped up its best fall/Christmas season 
ever last year. Crows president Bruce Mey- 
er: "Our customers want something to sep- 
arate them from the crowd." 

All this marks a sea change from the 
sackcloth style of recent years. "The begin- 
ning of the '90s was a reaction against the 
glitz and conspicuous consumption of the 
'80s," says Valerie Steele, a professor of 
fashion history at the Fashion Institute of 
Technology in New York City. "And you 
saw that in the 'Gapification' of America. 
Now there is a return to the status of fash- 
ion, luxury and quality." And how. Just ask 




'92 '93 '94 '95 '96 



Chanel, where women 
have reserved the com- 
pany's entire new line of 
$750 khaki pants even 
though the Gap offers a 
comparable look for about 
$38 a pair. 

The revitalization has 
been paying dividends for 
posh brands and retailers. 
"We have been absolutely 
driven by luxury products 
in the past 18 months," says 
Rose-Marie Bravo, president 
of Saks Fifth Avenue. "Con- 
sumers want you to know they 
have it [upscale style], but they 
don't want to shout." As an ex- 
ample of this quieter elegance. 
Bravo points to the sleek and 
somber fines of Jil Sander, where 
a suit averages about $3,000. 

That's what Chanel presi- 
dent Arie L. Kopelman calls in- 
vestment dressing— paying big 
bucks for attire that can wear well 
and remain a fashion statement 
tor years to come. "It's not just a 
plirase," Kopelman says of his 
comage. "It [means] pride in own- 
ership." He's not lacking for "in- 
vestors": sales rose 20% at Chanel 
last year. 

In the midst of anxious times, 
some consumers have decided 
that "dressing well is the best re- 
venge," using high fashion to 
show they've still got their jobs 
and station in life. It's called 
"let your Ferragamos do the 
talking," says Isaac Lagnado. 
And many people are doing 
list that. "Business is boom- 
nig across the board," says 
iVlassimo Ferragamo, pres- 
ident of Salvatore Ferra- 
gamo. "Sales are running 
55% ahead of last year." 
The top-end sellers 
don't see anything out 
there that could take 
the icing off their cake, 
and they continue to ex- 
pand. At the Ferragamo 
men's and women's 
shop in Manhattan's 
Trump Tower, de- 
mand for such items as 
;s and $2,260 leather jack- 
ets has grown so brisk that customers mayp 
purchase no more than 10 in any one cate-!^ 
gory such as coats or pairs of shoes. Per-p 
haps they'll just have to think of it as shar-g 
ing the wealth. —Reported by Stacy Perman/'^ 
New York and Jacqueline Savaiano/Los Angeles m 




$825 zip-top 'i 



48 



TIME, MARCH 25, 1996 



Even If All 

These Airlines Memed, 

We'd Still HyNonstopTo 

More Cities In Europe. 



Amsterd^iiii 

Berlin 

Brussels 

Copenhagen 

Dublin 

Frankfurt 

London 

Madrid 

Manchester 

Milan 
Moscow 
Munich 

Nice 

Paris 

Rome 
Shannon 

Zurich 



From The U.S., Nobody Gives You More Of Europe, Nonstop 

We don't stop with the usual nonstops to London, Paris, Rome and Frankfurt. 
We cover well over a dozen more major cities in Europe, too. Chances are that 
wherever business takes you. Delta can take you nonstop. 

In fact, we offer the only nonstops from the U.S. to Berlin, and 
from the U.S. to Nice. And our European schedule is so extensive, 
we have a separate hub in Frankfurt to take you on to even 
more cities throughout Eastern Europe. 

British Airways 

So when business calls you across the Atlantic, l^ivi ■ I Jl I /^■l\>TV/~%l J 

don't waste time calling a lot of other airlines. 

gBERtJBkt 



m 



Just call your Travel Agent, or Delta 
at 1-800-241-4141. 



•/•• 



ADelta ICLIVI 

You'll love the way we fly * * ^■''" 




AAUSAir 



^ 




Lufthansgr 



o 



1^ E C H M Q L Q G Y 

CAN MACHI 




Maybe so, as Deep Blue's chess prowess 
suggests. And that sparks a f rosh debate 
about the naturo of mind. Is it just neurons? 



By ROBERT WRIGHT 



WHEN GARRY KASPAROV FACED OFF AGAINST AN IBM COMPUTER 
in last month's celebrated chess match, he wasn't just after 
more fame and money. By his own account, the world chess 
champion was playing for you, me, the whole human 
species. He was trying, as he put it shortly before the match, 
to "help defend our dignity." 
Nice of him to offer. But if human dignity has much to 
do with chess mastery, then most of us are so abject that not 
even Kasparov can save us. If we must vest the honor of our species in some 
quintessentially human feat and then defy a machine to perform it, shouldn't 
it be something the average human can do? Play a mediocre game of Trivial 
Pursuit, say? (Or lose to Kasparov in chess?) 

Apparently not. As Kasparov suspected, his duel with Deep Blue indeed 
became an icon in musings on the meaning and dignity of human life. While 
the world monitored his narrow escape from a historic defeat— and at the 
same time marked the 50th birthday of the first real computer, eniac— he 
seemed to personify some kind of identity crisis that computers have in- 
duced in our species. 

Maybe such a crisis is in order. It isn't just that as these machines get more 
powerful they do more jobs once done only by people, from financial analy- 
sis to secretarial work to world-class chess playing. It's that, in the process, 
they seem to underscore the generally dispiriting drift of scientific inquiry. 
First Copernicus said we're not the center of the universe. Then Darwin said 
we're just protozoans with a long hst of add-ons— mere "survival machines," 
as modern Darwinians put it. And machines don't have souls, right? Certainly 
Deep Blue hasn't mentioned having one. The better these seemingly soul- 
less machines get at doing things people do, the more plausible it seems that 
we could be soulless machines too. 

But however logical this downbeat argument may sound, it doesn't appear 
to be prevailing among scholars who ponder such issues for a living. That isn't 
to say philosophers are suddenly resurrecting the idea of a distinct, immateri- 
al soul that governs the body for a lifetime and then drifts off to its reward. 
They're philosophers, not theologians. When talking about some conceivably 



50 



Illustration for TIME by Brian Cronir 




SURGEON GENERAL'S WARNING: Smoking 
By Pregnant Women May Result in Fetal 
Injury, Premature Birth, And Low Birth Weight. 




CARLTON 

CARLTON IS LOWEST 





urm is loml 



Case, M(Namee, Winblad On IPO Madness Linda Stone's Virtual Worlds lntera(fi've TV Not Dead Yet Asian PCs Invade U.S. Intranet Wars: Guess Who Wins? 



THE BUSINESS MAGAZINE FOR THE TECHNOLOGY ELITE 

UPSIDE 



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FOR YEARS, 

PEOPLE HAVE BEEN 

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carro aproximadamente Jis 18:30 horas. Atendido 
pelo Dr. Bandeira . A sua mao esquerda ficou presa na 
porta do carro. que abriu e fechou durante o acidente. 
Ao ser inlemado, tinha dores e sangramenlo na mao 
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100 



BY KORA McNAUGHTON AND TISH WILLIAMS 




It's been two years since the editors lost hunkered down in Upside's airless cell of a conference room to hash out a list 
of the 100 most influential people in the so-called "convergence industry" that we call our business (which includes 
information technology media and telecommunications). 
And now we know why. Constructing this list and getting editors' rankings caused full-scale e-mail warfare ("I can't believe 
Esther Dyson is number 1 21"). The decision not to include people like Vint Cerf — ^we called him the Father of the Internet in 
1 994 — may be heartless, but to paraphrase Janet Jackson, what has he done for us lately? The same could be said of Al 
Gore, upon vt/hom we once lavished praise as "one of the information highway's biggest champions." This time around, Gore 
failed to register even a blip on our radar screen. Cry us a river. 

Our goal is not to pay homage to on aging list of Hall of Famers, but to recognize those running the show right now. So 
here goes. We've ranked them so you con waste time in the lunchroom hooting and hollering, just as we did, about whether 
anyone at IBM — let alone Lou Gerstner — deserves a place on the list. 




1. Bill Gates, Chairman and CEO, 
Microsoft Corp. 

The mountain has come to Mo- 
hammed. Gates hfted his head 
from the sand in time to prove he 
really could leap to the top of the 
Internet business in a single bound. Now 
that he's turned his gaze to content, we'U see 
if he can turn Microsoft into the iibermedia 
company. 

2. Andy Grove, President and CEO, 
Intel Corp. 

Grove has coached Intel into a 
league of its own. With Intel's 
market value topping $83 billion, 
it's hard to find any real competi- 
tion for the microprocessor company. On top 
of that, Grove has the nerve to write a book 
about how paranoid he is. 



t 




3. John Doerr, Partner, Kleiner, 
Perkins, Caufield & Byers 

Doerr is the Internet's sugar daddy. 
The companies he has kick-started 
and sits on the boards of comprise 
a who's who of Net newcomers, 
and he has opened KPCB's wallet for a $100 
miUion Java fund. He also became the poster 
boy for those opposing shareholder-htigation 
legislation at the state and national levels. 

4. Michael Eisner, Chairman and 
CEO, The Walt Disney Co. 

Eisner has rebuilt Disney into the 
most prolific and highest-grossing 
studio in Hollywood, and kept 
mega-ego Michael Ovitz in check. 
Disney's acquisition of Cap Cities/ABC 
doesn't appear to have caused even minor 
financial indigestion — so far. 




E 




5. Larry Ellison, Chairman and CEO, 
Oracle Corp. 

l-nvv hull Of mock him, hut don't dis- 
miss him. When Lairy says "NC," the 
computer industry goes back to the 
drawing board. At least Ellison has the 
guts to take on the Sisyphean task of tackling Bill 
Gates with an unproved concept. Maybe his new 
stature as No. 5 on the Forbes 400 list helps. 

<^ 6. Scott McNealy, President and CEO, 
^m Sun Microsystems inc. 
J- f Recently married (and a father), McNealy 
L^ has settled contfortably into his latest task: 

preserving Sun's workstation dominance 
^ *■ and taking Java to new heights. Behind his 
loud-mouthed, frat-boy demeanor Hes a highly compe- 
tent exec with a leading company in the network age. 

7. Jim Clark, Chairman, Netscape 
Communications Corp. 

It takes a hell of a man to catch Bill Gates 
with his pants down. But the honeymoon's 
over, and Clark's Midas touch has put him 
squarely in Gates' rifle sights. He hasn't 
become gun-shy, though: Ln his newest venture, an on- 
line health care service, he'll face an entire industry of 
entrenched powers. 

WKBKM &• Jim Barksdale, CEO, Netscape 
HRPHB Communications Corp. 

W -*• turn OK, we laiow that Microsoft is catching up 
r -"^ jB in the browser wars. Barksdale isn't cowed, 
\^^l but says Microsoft's apps business is a hun- 
gry "bulldog" that must be fed — at the 
expense of its Internet strategy. Instead, Netscape's 
going after a bigger bone: the intranet server market. 

9. John Chambers, President and CEO, 
Cisco Systems 

Chambers is on a buying spree (six com- 
panies this year, including $4 billion for 
StrataCom, with more on the way) to 
match escalating Internet demand. Cham- 
bers has used an easygoing style to manage disparate 
acquisitions and grow Cisco into a networking domi- 
nance on par wdth Intel's and Microsoft's control of 
their respective markets. 

10. Reed Hundt, Chairman, Federal 





Hundt is no paper pusher, and he's made it 
clear that fostering competition is his top 
priority. He managed to muzzle the 
screeches of the telecom industry's 300- 
pound gorillas — the RBOCs and the long-distance ser- 
vice providers — and pass the landmark Telecom 
Reform Act. Next battleground: Intemet telephony. 




1 1. Rupert Murdoch, Chairman and CEO, 
News Corp. Ltd. 

MLiidoch has more money and chutzpah 
ihiui God — enough to buy up international 
media companies, launch digital broadcast- 
ing systems iind 24-hour TV channels, con- 
trol TV stations that reach 40 percent of American 
viewers, and top off a hard day's work by insulting Ted 
Turner's wife. And just when you thought he'd overex- 
tended News Corp.'s debt for the last time, he reels in 
MCI for a $2 billion cash fix. 

1 2. Esther Dyson, President, 




La Dyson is the highest-ranking member 
of the Upside EUte whose stature is based 
entirely on her abUity to influence others 
writh her ideas rather than directly control 
companies or huge amounts of capital. Dyson has 
defied the traditionally short pundit's life span 
(remember WiU Zachmann?) with more than two 
decades of savvy technology analysis. 



1 



1 3. Nathan Myhrvold, Chief Technical 
Officer, Microsoft Corp. 

Myhrvold is the man vnth the v\rrench, 
matching Gates' business vision with 
technical acumen. So good is he that Gates 
has now handed over much of the respon- 
sibility for converting Microsoft into a consumer prod- 
ucts/media company to Myhrvold. 



14. Louis Gerstner, Chairman and CEO, 
IBM Corp. 

When Gerstner took the top spot at Big 
Blue, spectators griped that the ailing 
company needed a "visionary" — and he 
wasn't it. Maybe, but he's proved the 
naysayers wrong. IBM's Internet Products Division 
has taken it off the sidelines, and the company is 
growing once again. 




1 5. Steve Ballmer, Executive Vice 
i Ifc.. President, Microsoft Corp. 

Wjl^^^K If Gates decides to stay home and play 

■HbHh house husband for his new baby, Ballmer 

^^^^Bl is the person most likely to succeed him. 

Ballmer's Tasmanian Devil routine keeps 

Microsoft in overdrive and his fortune boosted him 

to lucky No. 13 on the Forbes 400. 



16. Rick Sherlund, Partner and Software 
Analyst, Goldman Sachs & Co. 

Part Marlboro Man, part Wharton, Sher- 
lund's longish, sandy-blond hair and 
geek glasses belie his power to cause 
investors to drop Microsoft and Oracle 
ke hot branding irons. 




stock 



DECEMBER 1996 UPSIDE 



U|9sicl^^s eii*^ 1 



■■■■■ 1 7. Gil Amelio, Chairman and CEO, 
^^^^H Apple Computer int. 

W^ f^M ^^^ ^^^^ °^ ^^'^ ^^^ computer world rests 
■L3*''^B in Amelio 's hands. Apple keeps Mi- 
■L^lll^l crosoft honest by providing an alterna- 
tive, and AmeHo has been charged with 

keeping his company ahve. The word is Apple has 

turned the corner. 



£. 23. Eckhard Pfeiffer, President and CEO, 
«| Compaq Computer Corp. 
1^ Pfeiffer has managed to squeeze profits 
g' out of a PC market where wafer-thin mar- 
gins have left vendors begging for change 
on Wall Street comers, vaulting Compaq 
into the No. 3 computer manufacturer slot overall. 
His secret? Excruciating efficiency measures. 



KH 18. John Malone, President and CEO, 
r^ Tele-Communications Inc. 
■^1 Malone played mother-in-law to Tune 
\ J Warner's acquisition of Turner Broad- 
M casting System, and he still keeps the 
cable giant's eyes on the Internet prize. 
That's plenty to offset industry snickering over 
©Home's impotency in launching residential cable- 
modem Internet access. 

19. Masayoshi Son, President and 
CEO, Softbank Corp. 

Son IS buying everything that moves: 
new media ventures, old media ven- 
tures, trade shows, Internet-based com- 
panies. A 300-year plan for his company 
coupled with his aggressive "don't ask, don't tell" 
approach to debt management seems to indicate 
that the shopping spree is far from over. 





weUi 



24. Lew Piatt, Chairman & CEO, 
Hewlett-Packard Co. 

Ask any Silicon Valley manager whose 
style they try to emulate, and the answer 
wOl invariably be Lew Piatt's. HP's impres- 
sive (though not spectacular) growth, as 
its informal and goal-oriented management tra- 



dition, has flourished under Piatt's watchful eye. 

025. Gerald Levin, Chairman and CEO, 
Time Warner Inc. 
You've got to give Levin credit for 
climbing out of bed in the morning. He 
has earned himself uncontested dibs on 
the most highly criticized CEO title by 
buying the Turner Broadcasting System for a bloat- 
ed $7.5 billion. Still, he's at the helm of the largest 
and one of the most influential media companies in 
the world. 




20. Ann Winblad, General Partner, 
Hummer Winblad Venture Partners 

Rumor has it that Winblad and Bill 
Gates used to read programming manu- 
als together when they dated in the 
'70s. Winblad still does her homework 
and combines it with a sharp business sense that 
has made her one of the most successful software 
deal makers in Silicon Valley. 



H 



21. Paul Alien, Chairman, 
The Paul Allen Group 

Cash is king, and despite some mon- 
strously bad press (for kicking a kid's 
camp off his San Juan Islands property 
and for some terminally putrid busi- 
ness deals), Allen buys his way into some big 
deals and board positions. 




26. Robert Allen, Chairman and CEO, 
AT&T Corp. 

His long-distance empire is being invaded 
by Huns, shareholders are getting grumpy, 
antl he's just hired a right-hand man whose 
telecom experience consists of printing 
Yellow Pages. Right or wrong, Allen's actions rever- 
berate throughout the industry. 

e27. Steve Case, Chairman and CEO, 
America Online Inc. 
AOL's been mocked as the Intemet for 
morons, but Case keeps raldng them in. 
Rampant subscriber chum and new ground 
rules could snap AOL's revenue model Uke 
a twig — or vault Case into the Intemet pantheon. With 
a decadent $300 million advertising budget slated for 
1997, AOL's no motley fool. 



1 



22. Marc Andreessen, Senior Vice 
President of Technology, Netscape 
Communications Corp. 

Andreessen, the epitome of nerd 
revenge, got his toes on the cover of 
Time. When he isn't doing doughnuts 
m Silicon Valley parking lots in his white 
Mercedes coupe, you can find him raving rapidly 
about intranets at important industry events. 




UPSIDE DECEMBER T996 



'w.upside.com 



28. Ray Smith, Chairman and CEO, Bell 
Atlantic Corp. 

Smith laiows when to fold 'em (TCI) and 
when to hold 'em (Nynex). He is the most 
creative and technologically savvy of the 
RBOC leaders, though admittedly the com- 
petition isn't fierce. The Bell Atlantic/Nynex merger is 
mired in red tape for now, but it wOl create the second- 
largest RBOC in the U.S. 




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29. Herb Allen, President, 
Allen & Co. inc. 

Allen's good-ol'-boy retreats in Sun 
Valley, Idaho, are the backdrop for some 
of the most gigantic deals imaginable; 
chief among this year's slim pickings 
was Rupert Murdoch's purchase of New World 
Communications. Not quite as big as last year's 
Disney purchase of Cap Cities/ ABC, but it'll do. 

30. John Warnock, Cofounder, Chairman 
and CEO, Adobe Systems inc. 

Warnock is Adobe's technical guru and 
one of Sihcon Valley's few genuinely nice 
CEOs. But Adobe's going to need some 
seriously aggressive business maneuver- 
ing to curb its dependence on the Mac and capitalize 
on new Internet opportunities. 

31. Ted Turner, Vice Chairman, 
Time Warner Inc. 

#s«M Turner sold Turner Broadcasting System, 
^ H fired his son, made a financial lolling and 
landed a vice chairman's position. 
Chances are, his ego won't fade into the 
background without a scrappy attempt at the top 
spot of what is now the world's biggest media/enter- 
tainment company. 



32. Heidi Roizen, Vice President of 
Developer Relations, Apple Computer Inc. 

Roizen's charged with rekindling the love 
connection between the Macintosh and 
its jilted software developers. It's going to 
take more than cheap perfume and choco- 
t the faithful back onboard, but many say 





lates to , 



? 



2,£ 



if anyone can pull this caper off, it's Roizen. 

33. Bill Lerach, Partner, Milberg, Weiss, 
Bershad, Hynes & Lerach 

Lerach carts home $7 million a year from 
busting the chops of high-tech CEOs. His 
handshake with Clinton was followed by 
a presidential veto of the Securities 
Litigation Reform Act. Lerach led the Prop. 211 
greedfest campaign, Silicon Valley's worst nightmare. 
Loathe him. 

34. Eric Schmidt, Chief Technology Officer, 
Sun Microsystems inc. 

When Scott McNealy shoots off his 
mouth about network computing, it's up 
to Schmidt to make it so. Lie's busy dig- 
ging McNealy out of the Internet/ 
intranet-server hole as cheaper Microsoft NT servers 
make gains, and ensuring that the Internet won't 
take lava and nm, leaving Sun behind. 





if 




35. David Geffen, Jeffrey 
Katzenberg and Steven Spielberg, 
Founders, Dreamworks SKG 

^S ;i They are the world's best at what they 
do. They just haven't done anything 
yet. Sure, get piclcy about the trio's plans to put out a 
smattering of games and edutainment titles. But com- 
petitors are qual<ing in their loafers in anticipation of 
what this holy entertainment trinity will produce. 

36. Robert Wright, 
President and CEO, NBC 

Who else has the clout to convince 
Americans to get their news from 
Microsoft? Wright jealously guards the 
"free TV" networks' turf from cable and 
telco interlopers unshaclded by the Telecom Reform 
Act, but he has Uttle to complain about with a string 
of successful shows such as "ER" and "Seinfeld." 

f37. Jerry Yang, Chief Yahoo, Yahoo Inc. 
Yiing went from Stanford's grad-student 
ghetto to one of the Internet's biggest 
branding successes. Despite growing 
financial losses, Yahoo has managed to 
steer clear of extinction as Yang attempts 
to wean the savages off soap operas and onto the Web 
with personalized and localized services. 

^■||(k 38. David Chaum, Founder and Chairman, 
p^^ DigiCash BV 

▼^ _^ ^ . Willie you were busy reading glowing sto- 
A. i2*y^ "^^ about the future of smart cards in your 
lk<fl|^fl local daily, Chaum had already trade- 
marked the monil<:er "e-cash" and was 
busy setting up digital money trials around the world. 
His cryptography expertise, patents and influence wall 
keep him in the eye of the digital-cash craze. 

39. Bernard Ebbers, President and CEO, 
LDDS WorldCom Inc. 

In a market where the players' proHts can 
be laiger than the GDP of a small country, 
wildcatter Ebbers has superglued together 
a multibdhon, cream-sldmming telecom 
empire. The latest acquisition: MPS Communicati- 
ons, which earher in the year gobbled up UUNet 
Technologies. 

40. John Gage, Director, Science Office, 
Sun Microsystems Inc. 

Gage IS the qumtessential "big idea" guy 
and Sun's emissary to the rest of the 
world. When he gets a bee in his bonnet 
about something — whether it's Sun- 
related or civic-minded like NetDay — he can usually 
make it happen, come hell or high water. 





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41. 

and CEO, Bloomberg LP. 







Bloomberg nevertheless brings Silicon 
Valley's "no blood, no foul" entrepre- 
neurial spirit to Wall Street with the latest 
technology innovations. Next year we'll see whether 
Bloomberg is worth his cuff Hnks, as he tries to sashay 
his empire into the Internet space by dispersing 
Bloomberg's bundled content. 

42. Newt Gingrich, Spealter, 
U.S. House of Representatives 

With ethics charges nipping at his heels, 
Newt's popularity among the plebian 
hordes has nosedived, but he's well-liked in 
high-tech hbertarian circles. For Internet 
free-speechers, Gingrich represents the Communi- 
cations Decency Act's most high-profile opposition. 

43. Ray Lane, President and COO, 
Oracle Systems Corp. 

If Larry EUison (the bilhonaire that Lane 
built) shaved his head and became a 
Buddhist monlc, Ray Lane would keep run- 
ning the company, just as he does today. 
Lane was only recently given the keys to the presi- 
dent's office, but he no doubt expects to inherit the 
CEO position — someday. 

^■^ 44. Steve Jobs, Chairman and CEO, Next 
i !■ ^oitviate and Pixar Animation Studios 

Tas^lpK^ Mamage and kids have produced a kinder 
- :^fe and gentler fobs, once the enfant terrible of 

^L J|^ the high-tech industry. Having been around 
a hell of a long time, he became a high-tech 
crossover hit when "Toy Story" boosted respect for the 
role of computers in filmmal<ing. 

45. Chris Hassett, President and CEO, 
PointCast Inc. 

Hassett was the first to recognize that the 
easiest way to help people navigate the 
Web is to send content directly to their 
computer screens. But holding onto his 
throne as the long of information push won't be so 
easy, as media giants begin to cut out the middleman. 





47. Halsey Minor, CEO, Cnet: 
The Computer Network 

In a time when pubhshing a Web 'zine 
entails hiring dozens of serfs, slapping up 
a site and bleeding cash, Minor has made 
Cnet an Internet staple. He's practical, 
too: Rather than spew out a new search engine Hke 
HotWired, he adopted all the existing ones. 

S48. Tim Berners-Lee, Director, W3 
Consortium, Massachusetts Institute 
of Technology 
Lofty job descriptions abound at MIT, and 
Bemers-Lee's is no exception: He's been 
charged with helping the Web "realize its 
full potential" since hopping across the pond from 
Europe in 1994. He's credited v\rith being the first per- 
son to "conceptualize" the Web. 

49. Pam Edstrom, Principal, Waggoner 
Edstrom 

Pay serious attention to that woman 
behind the curtain. As Microsoft expands 
and devours new markets — especially the 
Internet, with its defiant, Microsoft- 
hating populace — PR queen Esdtrom vwll play a vital 
role in promoting Gates' visionary standing and the 
Justice Department's good faith. 

50. George Gilder, President, Gilder 
Technology Group 

You can't move in the high-tech industry 
without tripping over the mental mean- 
derings of this prolific, right-wing cyber- 
prognosticator. Diehard fans read Forbes 
ASAP for installments of his forthcoming book on 
the future of telecommunications, Telecosm, which 
threatens to continue ad infinitum. 





46. David 
Ramsey/Beirne Associates 

Headhunter to the stars, including fmi 
Barksdale of Netscape and Robert Herbold 
of Microsoft, Beime's latest major coup was 
luring AT&T COO Alex Mandl to a startup 
(with a salary, bonus and stock-option paclcage that 
could eventually be worth hundreds of millions of dol- 
lars, of which Beime gets a hefty chunl<). 





Q 



51. Stewart Alsop, Partner, New 
Enterprise Associates 

Alsop has shed his killjoy throne for the 
greener pastures of venture capital. He's 
made a Living infhcting his wrath on the 
best in the industry because they aren't 
better than they are. It remains to be seen whether 
his antagonism will lend itself to Fortune, where he's 
penning a new column. 

52. Mary Meeker, PC Software and 
Hardware Analyst, Morgan Stanley 

A key player in the Netscape IPO, Meeker, 
along with coauthor Chris DuPuy, is the 
first analyst to have a research report pub- 
Hshed in book form. The Internet Report 
(HarperCollins) is a veritable encyclopedia of the Inter- 
net, from "cool sites" Hsts to competitive analyses. 




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53. Dan Lynch, Chairman, CyberCash ln<. 

First he brought you Interop; now he's 
letting you blow your pocket change 
on the Net. Lynch is one of the 
kingpins of e-commerce, shaping the 
way the financial behemoths will hit 



the Net. 



54. Irving Wladasky-Berger, General 
^ Manager, Internet Division, IBM Corp. 

0^j Not your typical Big Blue suit, 
.'^J Wladasky-Berger was brought in to 



i 

||||P|p»' maneuver the lumbering Winnebago of 

IBM bureaucracy through the speedy 
hairpin turns of Internet business cycles. IBM 
isn't a Ferarri Testarossa just yet, but Wladasky- 
Berger's steering may just bring some agility back 
to Armonk. 



i 



55. Carol Bartz, CEO and Chairman, 
Autodesic inc. 

Bartz IS high tech's supcrwoman — with- 
out the spandex. Bartz leads a growing 
pack of high-tech female execs with the 
largest woman-run company in the busi- 
ness. Her sphere of influence includes Clinton's 
Export Council, boards from here to Timbuktu, and 
the Stanford Business School. 



t59. George Lucas, Chairman, 
Lucasfilm Ltd. 
If anyone can get Hollywood to slobber 
more over Sihcon-based digital innova- 
tions than over silicon breast implants, 
Lucas is the man. He has long been push- 
ing the technology envelope in the movie business. 
With the release of the "Star Wars" prequel, we'll 
witness the power of his fully operational digital 
death star. 

60. Jeff Berg, Chairman and CEO, 
International Creative Management (KM) 

When Michael Ovitz abandoned Creative 
Artists Agency for the Disney presidency 
in 1995, the media stopped caring where 
he takes his power breakfasts. Brainy Berg, 
knoMTi for pitting his agents against one another, 
stepped in to fill that power-broker vacuum. 

61. Jonathan Feiber, General Partner, 
Mohr Davidow Ventures 

A plucky youngster from Silicon 
'^'aifti— Valley's Sand Hill Road, Feiber is one of 

■^^ the up-and-coming venture capital 

mafia. He has funded and is on the board 
of a half-dozen startups, including PointCast, 
CATS Software and Ipsilon. 






56. Gary Reback, Partner, Wilson, 
Sonsini, Goodrich and Rosati 

Reback is the Anti-Gates of the legal 
world, a hopeful trustbuster Uving in a 
dark world in which Microsoft is Satan 
and publications as powerful as the Wall 
Street Journal axe mere "middlemen" paid to do its 
bidding. Representing clients from Novell to 
Netscape, he manages to get the Department of 
Justice's ear. 

r' 57. Dirk Ziff and Robert Ziff, Cochairmen, 
Ziff Brothers Investments 
Turning down daddy's publishing 
empire, the young brothers Ziff (Dirk is 
32, Robert is 30) are using some of their 
proceeds from the Ziff-Davis sale to 
finance startups, including Diva Communications 
and NetGravity. 



■■■■■j 62. Joseph Nacchio, President, Consumer 
^^P^H Services Group, AT&T 

Hg^ ^ ^ Nacchio, who's been at AT&.T for more 

ZX > ,. than 25 years, is the hit man muscling in 

||Mt^ I on the Baby Bells' territory. He vows he'U 

do whatever it takes to build AT&.T's 

market share, but will the telecom giant be able to 

keep him on its side? 

63. Stan Shih, Chairman and CEO, 
The Acer Group 

He doesn't have an Asian dynasty pedi- 
gree, but that hasn't hindered Acer's 
growth, and it's now among the top five 
PC vendors worldwide. Shih has sculpt- 
ed a manufacturing process that is both unique and 
efficient, and melded the cultures of his Taiwan- 
based company and its U.S. subsidiary with a 
skilled hand. 




58. John Markoff, West Coast 
Correspondent, New York Times 

Some refer to bad press m the Times as 
getting "Markoffed" — that's how influ- 
ential he is. Even a positive story on 
Microsoft, delivered months after near- 
ly identical stories in the trade press, can batter 
the stock of rival Netscape. 




a 64. Cristina Morgan, Managing Director, 
Hambrecht & Quist 
Morgan's not afraid to call the bluff of 
the Internet hypsters. As head of invest- 
ment-banking activities, Morgan taps 
H&Q's finest for public offerings and 
was one of the first people to publicly slam the 
Great Internet IPO Overhype. 



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■■■■J 65. Sherry Lansing, Chairman, Motion 
^^I^H Pi<ture Group, Paramount Pictures 

■ ^ ^H ^ '^h'^' boys' money can't buy a star on 

^k ^^HH the Hollywood Walk of Fame, which 

^^FvLM Lansing has in the bag — along with two 

~" consecutive Best Picture Oscars while 

head of Paramount Studios. Never underestimate the 

power of Beavis and Butthead. 

66. Chip Morris, Manager, T. Rowe Price 
Science and Technology Fund 

The recent rise of mutual funds as a 
"safer" way for individuals to play the 
stock market has propelled fund man- 
agers to new heights of fame. Morris, 
who heads one of the largest and most successful 
funds, discovers high-tech stocks whose growth 
matches the hype. 



71. Sherry Turlcie, Professor of Sociology 
of Science, Massachusetts Institute of 




He — M Turkic lilies to get inside the heads of 

^^pirj^ chronic Web sirrfers for a glimpse of what 

makes Net nuts tick. Her sociological 

approach to Internet-discourse analysis is gospel to 

executives who want to understand the patterns and 

habits of technology adopters. 

■j^^H 72. Bill Joy, Cofounder and Vice President 
HRPIH of Research, Sun Microsystems Inc. 

HN| *'^ The second coming of Joy brought the 
^^^:> jj world Java last year. Now, as the entire 
9K1#^ software industry bends under the antici- 
pation and expectations of Java's poten- 
tial, Joy decides which parts of Java will reach devel- 
opers and when. 



t67. Frank Quattrone, CEO, Technology 
Group, Deutsche Morgan Grenfell 
Shaq went to L.A. and Franl<; Quattrone 
went to DMG. Talk about slam-dimking 
a serious signing fee ... Sihcon Valley's 
premier free agent left Morgan Stanley 
looking like a doughnut — without a center — and 
recruited a venture capital Dream Team for the new 
DeutscheBank undertaldng. 



i 



68. Linda Stone, Director, Virtual Worlds 
Group, Microsoft 

If cyberspace were the Love Boat, Lmda 
would be the cruise-ship social director/ 
hostess-with-the-mostest. A friendly 
Microsoft face, she brings together artists 
and programmers to create technology that enhances 
human interaction on the Net. So far, her group has 
prodviced two chat services. 



flHHHN 69. Roger McNamee, General 
fFSfM Int^ral Capital Partners 

' ™^ I McNamee is a venture capitalist in engi- 

k *'"A» ^ neer's clothing. Breaking the spread- 

I ttVfl sheet-jockey mold, he's one of the few 

high-tech VCs who not only "gets" the 

technology but likes it, roaming the conference 

floors and actually reading the trades. 

I^jtfjfe^ 70. Pat McGovern, Founder and 
^^HP^^ Chairman, International Data Group 

^^^Jt You may not remember life before the 
^B^EW Internet, but McGovern's been publish- 
■^^Pj^^ mg computer rags since the '50s. Like 
an old Irish sailor, he's sailed the chop- 
py seas of the IT industry at the helm of IDG, 
steering his company to revenues of $1.4 billion 
last year. 



t73. Bill Gross, Chairman and Founder, 
Knowledge Adventure 
The Henry Ford of startup creation. Gross 
founded Idealab to mass-produce fledgling 
companies. With a flowchart to map cor- 
porate development. Gross has nearly 20 
companies incubating, including the CitySearch 
regional information venture. 

t74. Geoff Moore, President and Founder, 
The Chasm Group 
When high-tech execs need help position- 
ing their companies to take advantage of 
! the new paradigms they've created, they 
turn to Moore. His books, Crossing the 
Chasm and hiside the Tornado, have become bibles 
of sorts for the heavies he advises. 

75. Michael Milken, Felon/M & A Advisor 

Call him a junk-bond robber baron or a 
tmancial innovator, but Milken was 
rustling up cash for shaky technology 
and media companies when unadven- 
turous East Coast investors were still 
stuck in the Industrial Age. Nannygate's Kimba 
Wood felled the westward giant for a while, but 
he's served his time. Now he's back to pick the 
next market-altering trends. 




Si 



76. 

Directors, America Online's Motley Fool 

Wall Street can no longer claim a 
monopoly on rumor mongering and 
opinion making, thanks to the 
Gardner brothers. Anonymous, bearish postings to a 
Motley Fool Iomega forum in late 1995 caused a furor 
among buUish investors. The SEC is still trying to 
figure that one out. 



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Exports from Scotland are up 30% in the last two 
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Over 450 electronics companies are 
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Scotland produces nearly 40% of th 
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77. Jim Breyer, Managing General 
Partner, A«el Partners 

^ T Bivvcr's nctWDiking specialty keeps his 
) ventiue capital firm on top of the Internet 
space. Big p;irtncrships he's responsihle 
for inckide CentilHon and Bay Networks, 
Centrum and 3Com, ;md Collabra and Netscape. 

78. Richard Shaffer, Principal, 
Technologic Partners 

Teclinok)gic sponsors some of the indus- 
try's hottest events, where private compa- 
nies cruise the catwalk to impress venture 
capitalists and investment bankers. The 
conferences may have lost some of their buzz lately, 
but they're still the place to find the next hot EPO. Shaf- 
fer also heads a newsletter with uncommon insight. 




a 83. Robert Metcalfe, Columnist, 
infoWorld Publishing Company 
Metealte roped in this year's IEEE Medal 
of Honor — essentially, electrical engineer- 
ing's Nobel Prize — for his invention of 
Ethernet. He has turned to column writ- 
ing, maldng a splash playing the Net's Chicken Little 
("The Internet is crashing!"). 

84. Jeff Bezos, Founder and CEO, 
Amazon.com 

Look Ma, no inventory! Bezos left Wall 
Street to found his Seattle startup in 1994, 
and hasn't looked back since. Selling 
books from a Web site may not be much 

more than sophisticated mail order, but it's Internet 

commerce that works. 




f79. Mory Ejabat, President and CEO, 
Ascend Communications Inc. 
Aseend's stock has shot up so high so 
fast — with triple-digit increases — Ejabat 
has a permanent nosebleed. With 
Aseend's products tapped by both US 
West and Bell Atlantic, Ejabat's not likely to float 
back to earth anytime soon. 



s 



80. Pattie Maes, Assistant Professor, MIT 
Media Laboratory, and Cofounder, Firefly 

A pioneer in intelligent-agent technology, 
Maes began at MIT's Artificial In- 
telligence Lab but later defected to 
Nicholas Negroponte's younger, hipper 
Media Lab, which spun Firefly out of her work. 
Firefly is now the agent company with whom every- 
body wants to partner. 



i 



81. Tom Proulx, Cofounder, Intuit Inc. 
and Cochairman, Taxpayers Against 
Frivolous Lawsuits 

Tom Proulx is trying to save your shirt 
from the snapping jaws of shareholder 
lawsuits. Not content to rest on 
Quicken's laurels, Proulx is in attack mode against 
the vicious beast that is an unchecked legal profes- 
sion — he's fimd-raising, petitioning and campaigning 
the hell out of tort reform. 

npMH 82. Danny Hillis, Vice President of 
W aB Research and Development, The 

a / -aH Hillis cofounded Thinking Machines, 
f l£,,^^l where he designed the massively parallel 
"connection machine." He later left the 
company, but not before making a name as one of the 
computer industry's deep thinkers. He's now navel- 
gazing for Disney. 



a 85. Kim Edwards, President and CEO, 
Iomega Corp. 
Edwards pulled Iomega out of its slump 
and achieved a rare takeoff of a new tech- 
nology and format. His company stole the 
personal-storage market out from under 
SyQuest's nose in 1996, selling more than 1 million 
Zip drives in less than a year. 



W J^ 86. Walter Mossberg, Columnist, 
f ^^A| Wall Street Journal 

(^^y\iM Masquerading as a friendly advice col- 
"' umn for end users, Mossberg's weekly 
Personal Technology column is one of 
the first places product managers should 
look after launch to see if they'll still have a job the 
next morning. 



^^ 




87. Michael Stonebraker, Vice President 
and CTO, Informix Software Inc., and 
Professor, U.C. Berkeley 

Computer-science professor Stonebraker 
is the father of the relational-database 
industry; he recently gave Informix a new 
lease on life when it bought his latest startup, Ulustra 
Information Technologies. Stonebraker's universal 
server (don't tell Oracle we called it that) stores and 
sorts multimedia content. 

88. Paul Saffo, Director, 
Institute for the Future 

A who's who list of business leaders 
makes regular pilgrimages to the insti- 
^jJS tute's door seeking answers from this 
guru of new information technologies. 
But Saffo's feet are planted firmly on terra firma 
when he analyzes the impact of new products and 
technologies — not just on the business commu- 
nity, but on society as a whole. 




DECEMBER 1996 UPSIDE 



U|9siclG^s Eli*4 



J 




89. Rob Glaser, CEO and founder. 
Progressive Networks Inc. 

Glaser recognized the opportunity for 
then-untapped sound technologies on the 
Web, plastered the RealAudio name on any 
Web site and cHent worth its multimedia 
status, and captured the Internet sound market before 
competitors got a chance to put an ear in the door. 

90. Brenda Laurel, Researcher, 
Interval Research Corp. 

In the '70s, Laurel leaped from theater to 
computer-game design; today she's stdl 
taldng intellectual leaps in her work on 
human-machine interface design, virtual 
reality and inteUigent agents. Interval may be a 
money sinlc for Paul Allen, but Laurel does valuable 
work, consistently bringing a humanistic approach 
to virtual environments. 






91. Erk I 
President and CEO, 3Com Corp. 

The thorn in Cisco's paw, 3Com's soft- 
spoken leader has single-handedly kept 
3Com in the networking game through 
savvy acquisitions, preventmg his chief 

rival from developing a Microsoft/Intel-hke monopo- 

hstic dominance. 

92. Kevin Kelly, Executive Editor, Wired 

We're still not sure who anointed Wiied 
the official magazine of the digital revolu- 
tion, but the loudest magazine of the '90s 
owes its inspiration to Kelly, a born-again 
Christian and hawker for Absolut Vodl<;a. 
His far-flung ideas, many of which revolve around 
the increasingly biological nature of technology, are a 
Wired staple. 

93. Pom Alexander, President and 
Founder, Alexander Communications Inc. 

Alexander is not an object at rest. Her 
almost-frantic pace has allowed her to 
dodge highly padded corporate PR 
accounts for a vibrant group of small 
emerging chents. Plus, Alexander channels that hus- 
tle into actual account work, rather than just snatch- 
ing accounts for her minions to execute. 

94. Les Alberthal, President and CEO, 
Electronic Data Systems Corp. 

Want to run an airline but recoil in horror 
at the thought of instaUing and maintaining 
a reservations system? Call EDS. Alberthal 
freed EDS from its General Motors prison 
and pushed its one-stop-shopping approach to the lead- 
ing edge of information system services. 





S95. 
MUropro<essor Report 
When Slater speaks, the microprocessor 
world listens. An engineer with real 
opinions and knowledgeable sources, 
Slater is the most well-respected techni- 
cal analyst in semiconductors, although his 
newsletter did start that rumor about download- 
able microcode in Intel chips. 

EWM 96. Andrew Klein, Founder and President, 
^ Wit Capital Corp. 
CtI Klein brewed up a storm when he put his 
M Spring Street Brewing Co. prospectus on 
'JM the Net. Now he's started Wit Capital to 
help companies do direct Internet IPOs 
and bypass brokers' fees — an idea that tastes great but 
is less filling. All he's missing is the end product. 

^pJjPM ! 97. Stewart Brand, Cofounder, 
*^^^^. Global Business Network 

"i"%- ' ^1 Brand, who started the Whole Earth 
S^ >^M Catalog, brings black turtlenecks and 
berets to Net consulting. His high-tech 
consulting troupe — count in Esther Dyson, 
Doug Carlston and Danny Hilhs — tosses around big 
ideas on sponsor-selected topics. Brand continues to 
anticipate society's acceptance of technology. 

■■■■■I 98. Michael Dell, Chairman and CEO, 
HHIH Dell Computer Corp. 

I -K:^P After a nasty bout of retail sickness, a 
healthier, more mature Dell (the compa- 
ny) has emerged along with a happier, 
more mature Dell (the CEO). The compa- 
ny has moved back to its direct-mad roots and is 
once again at the top of the PC business. 

,^ 99. Allee Willis, Partner, Willisville 

And you thought the 'Triends" theme 

^ - il song was catchy; wait until a more recent 

1 ^' J\ 1 WiUis creation hits the Net. Her on-line 

.^k 1^^ community, Willisville, is anticipated to 

take the yawn out of multimedia. 

WiUisville has already caught the eye of Intel, which 

may or may not be bacldng it. 



• 



100. Brewster Kahle, President, 
Internet Archives 

The Internet of today may be chock-full of 
useless bits, but to archeologists of the 
future it will provide a wealth of infor- 
mation, thanlcs to Kahle, another Thinl<ing 
Machines alum and an early developer of Internet pub- 
hshing technology. It's a messy job, but somebody's got 
to do it. ■ 

Tish Williams and Kora McNaughton an; assistant editors of Upside, 



UPSIDE DECEMBER 1996 



www^upside.com 



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THE NEW YORK TIMES, THURSDAY. FEBRUARY 22. 1996 



D7 



Departure by Sears Signals Change in On-Line Industry 



ContimedFtom First Business Page 



I research xompa- 
Internet and on- 
"The breakneck 
pace of innovation will lead to lower 
prices and more variety." 

And what happens if your on-line 
company should change owners or 
■ altogether? "I don't think 



long-term strategy for growth," Ar- 

chief executive of the world's sec- 
ond-largest retailer, lold financial 
analysts in New York yesterday. 

Executives from both Sears and 
l.B.M. praised-the evolution of Prod- 
igy under its chief executive. Ed- 
ward Binnett. a former cable TV 



hired last year by Prodigy. Mr. Ben- 
nett made Prodigy the first of the big 
on-line services to offpr its spbscrib- 



companies," Mr. Schoenfeld 
"If your company goes out of 



puter commands to a point-and-click 
navigational system. 

Since 1993, when the Internet's 
World Wide Web service suddenly 
became popular, analysts have been 
suggesting that the wide-open, global 
Web would overtake and overwhelm 
the smaller, proprietary services 
like CompuServe and Prodigy. The 
consumer services differ from the 
Internet in that they require special 
software, unique to each service, to 
tap into that service's private data 
bases of news, features, discussion 
groups and other onTline offerings, 
b, though, many 



Even \ 



analysts say the Internet is still too 
difficult to use. Services like Prod- 
igy, CompuServe and America On- 
line hide the Internet's complexity 



ware and back it with c 

port systems that the Internet lacks. 

"We remain convinced that the 
most compelling choice for the mass 
market consumer is still on-hne 
services." Brian C. Oakes, an ana- 
lyst with J. P. Morgan Securities 
Inc., wrote to itivestors last month. 

Sears's decision to sell Prodigy 
may be partly to capitahze on the 
potentially high value that an on-line 



system might command in the mar- 
ketplace today. It is also, however, 
the culmination of a three-year pro- 
gram to return to its retailing roots. 
Sears has ah-eady spun. off Allstate 
and Dean Witter Discover & Compa- 
ny, its former insurance and finan- 
cial services subsidiaries, and even 
sold the Sears Tower building in 
Chicago. Selling Prodigy is the last 
step in that process. 

i three-hour meeting with i 



speaking to reporter: 



I, Mr. I 









lalysts 



Martinez did 



not make a single reference l„ ^.^^ 
tronic commerce, which many con- 
panies believe is going to emerge a 
a multibillion-dollar business by th 
end of the decade. Mr. Martinez sai 
that he had concluded that Sear 
could better spend its capital on n 



were to become involved in selling 
over the Internet, it would be better 
for the company not to be tied to a 
single service like Prodigy. 

Sears, like H & R Block, may also 
be eager to unload its on-line venture 
in what has become an increasingly 
hostile legal environment. Prodigy 
was sued for $200 million last year 
by a Long Island investment bank 
that accused it of libel, based on 
comments posted on the service by a 
subscriber. The suit was dropped. 



But certainly, the on-line lineup is 
in flux. Since the beginning of this 
year. Rupert Murdoch's News Cor- 
poration has effectively shelved 
what was left of the former Delphi 
on-line service; AT&T has pulled the 
plug on its Interchange Network; the 
General Electric Company has un- 
loaded its Genie service; Apple 
Computer Inc. said it was re-evalu- 
ating its support for eWorld, and the 
Microsoft Corporation told develop- 
ers of information services for its 
Microsoft Network to redirect thelr_ ^ 



Falling Behind 

Neither CompuServe nor 
Prodigy has been able tc 
match America Online's 
growth. Percentage inert 



4 



efforts and create offerings for the 
World Wide Web. 

Analysts cite a variety of reasons 
for the tumult, including intense 
competition, the high cost of develop- 

cess providers who bypass consum- 
er services like Prodigy and Amer- 
ica Online, and recent passage of the 
Telecommunications Act of 1996. 

"It's not a coincidence that these 
announcements happened right af- 
ter the passage of the telecom bill," 
said Rod Kuckro, editor of the Infor- 

port, a newsletter based in Washing- 
ton. "It gave a lot of companies the 
ability to start planning for the fu- 

The Telecommunications Act, re- 
cently signed by President Clinton, 
allows the big telephone and commu- 
nications companies to expand be- 
yond their traditional businesses and 
begin developing their own on-line 
information services. 

"It's cheaper to buy a system with 
established customers than it is ti 
build one from scratch, and the onh 
companies that can afford to buy J 
stake in these on-line services am 
develop their infrastructure are thi 
big telecom companies," Mr. Kuckn 
said. 

Mr. Kuckro also noted the attrac 
live demographic profiles of on-lim 
service subscribers, who tend to bi 



"Prodigy does not fit into Sears's 



Dl 

THURSDAY, FEBRUARY 22. 1996 



Sears Moves 
To Shed Stake 
In Prodigy 

The On-Line Business 
Is Takit^ a New Shape 

By PETER H.LEWIS 



And now it is Prodigy's turn. 

In the latest sign of upheaval in the 
computer on-line industry, Prodigy Serv- 
ices, the nation's third-largest consumer 
on-line information service was put up for 
sale yesterday — at least the half that is 
owned by Sears, Roebuc'k & Company. 
I.B.M., Sears's longtime partner in Prod- 
igy, declined to comment on its own plans 
for the service, which has 1.7 million sub- 
scribers. 

Sears's move came just a day after 
H & R Block Inc. announced it planned to 
spin off its CompuServe division, the sec- 
ond-largest service. 

It might seem odd that these market 
leaders would want to leave the field, in 
light of phenomenal growth that saw total 
on-line subscribers in the United States 
nearly double last year, to 1 1 .3 million. But 
wkh the market booming, analysts say, 
now may be the best time to sell out for 
companies not fully committed to the in- 
creasingly competitive and volatile busi- 
ness of putting consumers in cyberspace. 

Sears, which analysts say had pumped 
about $600 million into Prodigy, indicated 
yesterday that it remained a retailer first 
and foremost, and H & R Block said on 
Tuesday that it wanted to focus on its tax- 
return business. 

America Online Inc., the country's larg- 
est on-line service with more than five 
million subscribers, has no other lines of 
business. But even it has been forced to 
scramble full-time to keep up with the 
needs of increasingly sophisticated, ever 
more demanding consumers. Among other 
changes, America Online recently set up a 
separate company to provide direct con- 
nections to the global Internet for sub- 
scribers who choose to bypass America 
Online's own, proprietary lineup of infor- 
mation and entertainment services, dis- 
cussion groups and other offerings. As 
hardly a week goes by without a new 
alliance, acquisition or rumor of yet an- 
other change in the on-line industry, ana- 
lysts acknowledge that the millions of 
Americans with computers and modems 
could become confused. But the upheaval, 
driven by competition, will ultimately be 
good for consumers, many analysts say. 

"There's an ever-increasing number of 
options for consumers, in both the on-line 
services and the Internet," said Adam 
Schoenfeld, vice president of Jupiter Com- 

Con(inuedonPageD7